Volkswagen’s US Emissions Settlement to Cost a Whopping $15 Bn
The German automaker in September had admitted that it intentionally misled regulators.
Volkswagen AG’s settlement with nearly 5,00,000 US customers and government regulators over polluting diesel vehicles is valued at more than $15 billion cash, two sources briefed on the matter said on Monday.
The settlement, which will be announced on Tuesday in Washington, includes $10.033 billion to offer buybacks to owners of about 4,75,000 polluting vehicles, and nearly $5 billion in funds to offset excess diesel emissions and boost investment in zero emission vehicles.
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 $500 million and will push the total to over $15 billion.
The settlement stems from the German automaker’s admission in September that it intentionally misled regulators by installing secret software that allowed US vehicles to emit upto 40 times the legally allowable pollution.
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