It was reported recently that Volkswagen could have to pay as much as $10 billion to settle its diesel emissions scandal in the United States, but the final number has turned out to be bigger than that. The German auto group is going to have to pay $14.7 billion to settle this matter in the U.S., much of the money will be used to compensate owners that were sold cars that product high levels of pollutants.
Volkswagen will offer both buyback and repair options to customers. Those who opt for the buyback will receive an amount equal to the trade-in value of their car before the diesel emissions scandal came to light. Owners will also get up to $10,000 in cash as an apology.
Volkswagen will also have to set aside as much as $5 billion for regulators in the United States which includes the Environmental Protection Agency and the California Air Resources Board. This amount will be used for zero emission research and development as well as fixing the damage caused by the over-polluting cars.
That’s not the end of the story, though, the company is likely going to be hit with lawsuits over this scandal and that will cost it money too. There’s also the fact that regulators all over the globe are looking at VW cars sold in their country to ascertain whether emissions test cheating cars were sold in their territories as well, and that would mean having to settle in those countries as well.
Filed in . Read more about Volkswagen. Source: bloomberg