Date
17 October 2017
Volkswagen is reported to have reached a US$10 bln civil settlement in the US following an emissions-cheating scandal. Photo: Bloomberg
Volkswagen is reported to have reached a US$10 bln civil settlement in the US following an emissions-cheating scandal. Photo: Bloomberg

VW said to reach US$10 bln settlement in US over emission claims

Volkswagen will pay more than US$10 billion to settle claims by nearly 500,000 US vehicle owners affected by the German automaker’s emissions-cheating scandal, Reuters reported, citing sources.

Owners will receive an average of US$5,000 in compensation along with the estimated value of the vehicles as of September 2015, before the scandal erupted, according to the report.

As part of the settlements, Volkswagen will to help boost zero emissions vehicles and introduce a program to offset excess diesel pollution from the offending vehicles, it said.

The settlement is valued at US$10.3 billion in documents outlining some of the complex settlements, a source was quoted as saying.

Another source said that figure does not include part of the environmental costs, which will raise the overall settlement total. 

In September, VW disclosed that it had used sophisticated software to evade emissions requirements in nearly 11 million vehicles worldwide.

It also misled the US Environmental Protection Agency, which had started asking questions in 2014.

Reuters reported last week the initial VW settlement would not include civil penalties under the US Clean Air Act or address about 80,000 larger 3.0 liter Audi, Porsche and VW vehicles that emitted less pollution than 2.0 liter vehicles.

A deal covering the 3.0 liter vehicles may still be months away.

The settlement also does not address lawsuits filed by US states or investors or a criminal investigation by the Justice Department, according to the report.

VW is not expected to be allowed to resell or export repurchased vehicles, unless they convince regulators that they can be fixed.

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RC

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