Volkswagen to Pay Over $15 Billion in Settlement
When Volkswagen decided to put software in its vehicles that allowed them to burn ridiculous amounts of fuel, I’m guessing they weren’t expecting to eventually have a $15.4-billion settlement slapped on them. Likewise, they are currently in talks with 44 states in the US, which should end up in VW having to pay out at least another estimated $600-million. The amount that Volkswagen ends up really paying in the end is anyone’s guess, though, seeing as so much of that $15b is set aside for buybacks and repairs, of which repairs are far less expensive for the company.
German automaker Volkswagen AG has agreed to pay more than $15.3 billion in a settlement with U.S. regulators over pollution caused by its diesel vehicles, according to a source briefed on the matter.
The settlement stems from VW’s admission in September that it intentionally misled regulators by installing secret software that allowed U.S. vehicles to emit up to 40 times legally allowable pollution. It covers 475,000 2.0-liter vehicles.
The Justice Department filed a proposed consent decree that confirms VW will set aside $10.033 billion to cover buybacks and fixes, $2 billion to invest in green energy funds and $2.7 billion to offset diesel emissions.