Volkswagen agrees to pay record $14.7billion settlement over Diesel emissions cheating

Volkswagen has agreed to pay a record $14.7 billion as settlement over
emissions cheating and that’s just the beginning as they could pay more ,
court documents have revealed..

automobile company Volkswagen AG agreed to pay up to $14.7 billion to
settle emissions-cheating claims with regulators and owners of nearly
500,000 diesel-powered vehicles, a step toward resolving a major portion
of a crisis that sparked litigation and investigations across the globe
and cost the company chief executive his job.
reached the civil settlement, the largest-ever for a car production
company, with the U.S. Justice Department, Environmental Protection
Agency, Federal Trade Commission, California regulators, and consumer
plaintiffs’ lawyers. The settlement doesn’t include other possible civil
or criminal financial penalties that could later be levied by the
Justice Department.
The total payout, detailed in hundreds of pages of settlement documents filed on Tuesday
in a San Francisco federal court, includes up to $10.03 billion for
owners of affected vehicles with two-liter diesel engines. Volkswagen
will also pay $2.7 billion for an environmental remediation fund, and $2
billion to be invested in promoting so-called zero-emission vehicle
technology, court documents have revealed.
settlement is only a preliminary step in the case; the automaker still
faces possible criminal charges, as well as civil penalties for Clean
Air Act violations.
 The Department of Justice
is investigating possible criminal charges against both the company and
individuals, said Deputy Attorney General Sally Yates.
wrongdoing constituted “the most flagrant violations of our consumer
and environmental laws in our country’s history,” said Yates. “We cannot
undo the damage that’s been done to our air quality but we can offset
that damage.”
Up to $10 billion of the funds will be paid out to owners of the 500,000 affected diesel cars in the U.S.
owners will get a cash payment of between $5,100 and $10,000 to
compensate them for the lost value of the cars, as well as for
Volkswagen’s deception in promising that they were buying a “clean
diesel.” Most of the buyers paid extra for a car with a diesel engine.
also will either repurchase or fix the 487,000 U.S. cars sold under the
VW or luxury Audi brands, depending on what the owners want. Owners
will have until May 2018 to decide.
know that we still have a great deal of work to do to earn back the
trust of the American people,” Volkswagen Chief Executive Matthias
Müller said. “We are focused on resolving the outstanding issues and
building a better company that can shape the future of integrated,
sustainable mobility for our customers.”
Source: CNN/ Reuters/ Wall Street Journal

Leave a Reply

Your email address will not be published.