Volkswagen is close to a deal to pay $2 billion to settle a US criminal investigation into the emissions-cheating scandal involving its diesel cars, the New York Times reported Friday.

A settlement between the US Department of Justice and the German auto giant could come as early as next week, the newspaper said, citing three people who were not identified.

VW told AFP it was continuing to cooperate with US authorities to resolve the case.

Volkswagen admitted last year it had installed software on as many as 11 million diesel vehicles sold worldwide to circumvent tests for emissions while enabling them to release up to 40 times the permitted amounts of nitrogen oxides during actual driving.

Volkswagen already has settled civil charges in the scandal, agreeing to pay $14.7 billion in an agreement that permits owners of nearly a half million 2.0-liter diesel vehicles to either sell them back or get them fixed.

Last month, the company announced it reached an additional $1 billion civil agreement with US authorities for a similar on deal covering 80,000 3.0-liter diesel vehicles. However, that agreement has yet to be approved by a judge.

Volkswagen to recall around 50,000 cars in China
Beijing (AFP) Jan 8, 2017 –

German carmaker Volkswagen will recall almost 50,000 vehicles in China due to brake problems when using cruise control, according to the country's quality regulator.

The company will recall Beetles made between July 1, 2012 and Aug. 6, 2015, and Golfs, made between July 1, 2012 and July 6, 2013, according to a statement posted Friday on the official website of China's General Administration of Quality Supervision, Inspection and Quarantine (ASDIQ).

A problem with noise filters may cause difficulty with breaking when the cars have been in cruise control for long periods of time, ASDIQ said, adding that the problem created a "hidden safety risk".

The company will fix the problem for free, it said.

Volkswagen's business has been under the microscope since 2015, when it was revealed the company had installed software on 11 million cars that allowed them to defeat emissions tests.