The US government doesn't want to put VW out of business
Of course, VW is a very big company, selling millions of vehicles worldwide, so it can take the punishment. But that doesn't mean it isn't going to hurt.
According to Bloomberg's Tom Schoenberg and Alan Katz:
It's unlikely that even a massive and punitive fine would ruin VW, as Schoenberg and Katz acknowledge. But whatever Dieselgate ends up costing VW in the US, it isn't going to be good for the automaker's flagging American presence. In the most competitive auto market in the world, and with a deep brand legacy dating back to the original VW Beetle, VW has weak market share - only around 2%.
Sales have been swooning since the emissions scandal broke, but they weren't so hot before it hit. Thus far, VW hasn't given any indications that it wants to exit the US, at least with the VW brand (Audi and Porsche are still doing well).
But whether VW stays or goes is something that the Justice Department will probably have to consider, Schoenberg and Alan Katz report. If the company's ambitions to be a top-seller in the US weren't such a struggle, the government could conceivably be more aggressive.