Date
20 July 2017
Volkswagen's settlement includes US$10 billion to offer buybacks to owners of about 475,000 polluting vehicles. Photo: USA Today
Volkswagen's settlement includes US$10 billion to offer buybacks to owners of about 475,000 polluting vehicles. Photo: USA Today

Volkswagen’s US diesel emission settlement to cost US$15 bln

Volkswagen AG faces a US$15 billion bill to settle claims by nearly 500,000 US diesel owners and government regulators over vehicle emission.

The settlement, to be announced on Tuesday in Washington, includes US$10.03 billion to offer buybacks to owners of about 475,000 polluting vehicles and nearly US$5 billion in funds to offset excess diesel emissions and boost zero emission vehicles, Reuters reports.

A separate settlement with nearly all US state attorneys general over excess diesel emissions will be announced on Tuesday and is expected to be more than US$500 million and will push the total to over US$15 billion, a source briefed on the matter said.

The US Environmental Protection Agency and Volkswagen declined to comment.

Speaking on condition of anonymity due to court-imposed gag rules, the original source said that owners of 2.0 liter diesel VW 2009-2015 cars 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.

Prior owners will get half of current owners, while people who leased cars will also get compensation, according to Reuters.

Owners would also receive the same compensation if they choose to have the vehicles repaired, assuming US regulators approve a fix at a later date.

The settlement includes US$2.7 billion in funds to offset excess diesel emissions and US$2 billion for green energy and zero emission vehicle efforts, the source said.

The diesel offset fund could rise if VW has not fixed or bought back 85 percent of the vehicles by mid-2019.

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