VW to pay $15 billion to settle 'dieselgate' in the U.S., report says
When "dieselgate" first broke late last year, Volkswagen set aside roughly $7.3 billion to pay for the scandal worldwide. Turns out, it might cost the automaker more than double that figure to settle -- and that is just in the U.S.
Volkswagen is scheduled to file its emission-cheating settlement in court on Tuesday morning. The German carmaker is planning to buy back diesel-powered models from owners in the U.S. and also compensate them up to $10,000 a piece, "two people familiar with the negotiations" told Bloomberg.
Added together, this part of the plan alone would cost VW $10.03 billion. Amazingly, those figures could rise if VW misses key deadlines, Bloomberg reported.
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VW will also have to pay $2.7 billion in fines to the U.S. Environmental Protection Agency and California Air Resources Board. Lastly, it will also spend another $2 billion on clean-emissions technology.
Notably, this new $15-billion figure is up from the estimated $10 billion reported late last week.
Although some 11 million cars were affected by the carmaker's emissions scandal, only around 500,000 of those were sold in the U.S. The settlement figure is so high because the U.S. agencies are determined to get the cars fixed or off the road without letting VW off the hook or leaving consumers in the lurch.
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Topics Cars
