Volkswagen To Pay Diesel Owners Up To $7,000 In Massive $10.2 Billion Emissions Settlement
The finish line is in sight for Volkswagen, and more importantly, diesel owners that were innocently caught up in the German auto giant’s emissions cheating scandal. Although an official settlement offer is expected to be revealed on June 28th, sources close to Volkswagen are revealing that the company will pay $10.2 billion to settle the matter.
That $10.2 billion figure includes penalties that Volkswagen will have to pay to the United States environmental agencies, and funds to buyback affected diesel vehicles that can’t be brought into compliance with EPA requirements the company has cheated for years. Customers will also be given a separate cash payment as a goodwill gesture for their inconvenience according to these same sources. The payment was previously pegged at a flat $5,000 for all affected customers, but it’s now being stated that diesel owners will receive between $1,000 to $7,000 depending on the age of the vehicle.
But if you expect for it to be a simple task to get your cash payments, guess again. “Car owners will be faced with complex calculations to figure out how much cash they might receive from Volkswagen, two of the people said, which could upset them and harm the carmaker’s relationship with buyers even further,” writes Bloomberg.
Volkswagen first fessed up to cheating EPA emissions tests back in September 2015. It was revealed that the company was using a “defeat device” programmed into TDI engine control units (ECU), allowing them to emit safe levels of nitrogen oxides (NOx) while operating under the EPA’s battery of emissions tests. However, when vehicles were on the road in everyday situations, the engines spewed 40 times the level of NOx that was legally permissible.
In total, over 482,000 vehicles in the U.S. have the defeat device installed. Volkswagen has already compensated diesel owners once since the scandal first broke. In November, the company offered a $1,000 Goodwill Package to U.S. customers that include a $500 debit card (which could be used anywhere), $500 in dealership credit, and an additional three years of free roadside assistance.