VW emissions scandal: $14.7 billion settlement gets initial approval in US


Volkswagen has been given preliminary approval for its $14.7bn (around £11bn) settlement with owners of cars in the US affected by the emissions scandal.

The money will be used to compensate some 475,000 drivers, and the settlement figure could get final approval on 18 October at a hearing.
Owners can choose between getting the software fix or selling their car back to VW, and they will also get additional compensation payments of between $5100 to $10,000 regardless of which choice they make.
Volkswagen continues to draw criticism from political figures, as it stands by its decision to not offer compensation to European customers, despite the mounting pressure to do so.
Spokespeople from Volkswagen have claimed that compensation is not necessary in the UK and the rest of Europe, as the fix is less extensive and customers will therefore have their cars back soon after they have been recalled.
The compensation scheme that has been reached is still not a final conclusion, however, as it still needs to be officially approved by a US judge on 18 October before compensation and buy-backs can commence.
A further $2bn (around £1.5bn) will be put into the development of zero-emissions vehicles such as hydrogen fuel cell cars and electric vehicles, while $2.7bn (around £2bn) will be put into environmental mitigation.
In the UK, it was recently revealed that Volkswagen offered to cover the cost of government retesting of vehicle emissions. However, the offer was only extended to Volkswagen Group vehicles, rather than all of the cars tested from various manufacturers, which reportedly cost a total of £2 million. 
The results of the retesting scheme revealed that only Volkswagen Group products used the so-called ‘defeat devices’, the discovery of which sparked the emissions scandal.
VW also reached a “partial settlement” with 44 states last month for a total of $603 million.
As well as this, Maryland, New York and Massachusetts are all filing lawsuits against the manufacturer, accusing it of violating state environmental laws and defrauding regulators, according to Reuters. These lawsuits would be in addition to the $14.7bn compensation package.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s