Volkswagen in settlement talks

German automaker Volkswagen AG said Tuesday that it was in “advanced talks” with United States authorities over a proposed settlement in its diesel emissions scandal under which the company would pay $4.3 billion in criminal and civil fines.

The draft settlement with the U.S. Department of Justice and U.S. Customs and Border Protection would include the appointment of an independent monitor to oversee the company’s compliance and control measures for three years.

A company statement issued Tuesday said that under the proposal Volkswagen would agree to “a guilty

plea” to criminal law provisions.

The draft needs to be approved by Volkswagen’s boards and U.S. courts. Volkswagen said its management board of top executives, which includes CEO Matthias Mueller, and its board of directors would deal with the issue “in the very short term,” as soon as Tuesday or today.

“A final conclusion of the settlement agreement is further subject to the execution by the competent U.S. authorities and to the approval of the competent U.S. courts,” the company said.

The penalties would exceed the amounts Volkswagen has set aside to cover costs from the scandal, but the specific impact on 2016 earnings “cannot be defined at present,” the statement said. Volkswagen had already deducted 18.2 billion euros ($19.2 billion) from earnings to account for the expected costs of fines, settlements and recalls.