Volkswagen emissions scandal: Dieselgate settlement to cost VW $ 15 million
- Author: Rosalie Stanley Jul 01, 2016,
Jul 01, 2016, 1:05
The vehicles at issue include diesel vehicles from the 2009-2016 model years, including the Volkswagen Touareg, Porsche Cayenne Audi A6 and A7 Quattro, Audi A8 and Audi Q5 and Q7.
Still, the total amount is pushing over $15 billion when we add in all the separate settlements with the U.S. state attorney generals for excessive diesel emission which will amount to $500 million.
The German automaker has agreed to spend a big sum of $15 billion (around Rs. 1 lakh crore) in lieu of settling consumer lawsuits and government allegations regarding its diesel cars that were created to cheat during the emission tests.
VW will also pay the California government and tribal agencies $2.7 billion to help them replace old diesel buses or to help fund infrastructure to cut down diesel emissions.
Terms of the settlement, revealed in court orders filed with the US District Court in San Francisco, showed that VW - now headed by Matthias Muller - will also pay governments $2.7bn (£2bn) for environmental mitigation and spend another $2bn (£1.5bn) for research on zero-emissions vehicles in the US.
The agreement does not resolve pending claims for civil penalties or any claims concerning the 80,000 larger 3.0-liter premium diesel vehicles. VW will buy back your vehicle - regardless of its condition - at the trade-in price before the cheating was made public on September 18, 2015, or fix your auto. Owners can choose to decline Volkswagens offer and sue the company on their own.
To cover the expenses of the buyback and fixes for the scandal-hit diesel vehicles, which were equipped with illegal software to circumvent the U.S. government's emissions tests, VW has earmarked an amount of over $10 billion.
Under the settlement, the company must fix or buyback 85 percent of the 475,000 vehicles or face penalties otherwise. It was the added that the consumers will get an option as to whether they would sell their Volkswagen vehicles for the resale value, or they would have the auto repaired by Volkswagen themselves to comply with the USA emission laws.
Q: Will attorney fees take all of my payments like they do in many class-action lawsuits? Investigators determined that the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems in humans.