Volkswagen to Settle Diesel Claims in U.S. for $14.7 Billion
Volkswagen announced Tuesday it plans to pay up to $14.7 billion to settle Dieselgate-related claims. The proposed settlement, one of the largest ever for a consumer class-action settlement, covers approximately 475,000 Volkswagen vehicles including 460,000 Volkswagens and 15,000 Audis with 2.0-liter diesel engines.
The settlement, which is subject to the approval of Judge Charles R. Breyer of the United States District Court for the Northern District of California, who is presiding over the Dieselgate-related litigation, is slated to be filed with the court by noon local time in California on Tuesday. It includes $10.03 billion for the embattled automaker to buy back diesel cars at pre-Dieselgate values plus additional compensation ranging from $5,000 to $10,000 for owners, according to two individuals familiar with the negotiations. It also includes lease terminations for leased vehicles.
Last September, Volkswagen admitting installing a defeat device that allowed its diesel-powered vehicles to pass emissions tests by limiting emissions during the testing cycle.
VW will also pay almost $3 billion in fines to the U.S. Environmental Protection Agency and the California Air Resources Board as well as invest $2 billion in clean-emissions technology for its new vehicles. A separate $400 million settlement with most states is expected, a person familiar with the plan said.
The automaker’s troubles are far from over, however. South Korean officials arrested a Volkswagen executive as part of an investigation into the automaker’s possible violation of the country’s environmental laws.
(Photo: Accura Media Group)