Volkswagen Is Paying The US $15 Billion For Rigging Diesel Emission Tests

Industry News / 12 Comments

That's all? Seriously?

The whole Dieselgate saga is something Volkswagen very much wants to put behind it for good. The PR damage is still going to hang around for some time, but if VW can get a few governments off its back then hey, that's a solid start. So the first government VW has to pay off is the US. According to several reports, the price to settle lawsuits in the US will total more than $15 billion. That'll be $10 billion for VW owners and another $5 billion in fines.

The first amount will cover costs including buying back vehicles at pre-Dieselgate values. Owners will also be compensated by as much as $10,000 per car just for their troubles. However, if Volkswagen ends up missing deadlines those fines could increase even further. VW will also be paying the Environmental Protection Agency and California Air Resources Board $2.7 billion in fines, $2 billion of which will go towards clean-emissions technology. The auto giant will soon announce settlements with several US states, such as New York, for another $400 million. The bright side for VW, in light of the settlement announcement, is that its shares increased by 2.6 percent the other day in Frankfurt.

Meanwhile, investors in both the US and Germany are suing VW for misleading them and the resulting mass losses in the days leading up to Dieselgate's reveal last September. Also interesting is that just last week, South Korean prosecutors arrested a VW executive as part of the country's investigation into the scandal. As much as VW wants to make Dieselgate a thing of the past, its past will continue to haunt it for the foreseeable future.

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