VW Diesel Owners to Get $1000 to $7000 in Proposed Settlement

-Earlier this week, we reported on the details of Volkswagen’s potential fix for its TDI emissions scandal as the company nears its June 28 deadline to submit a proposal. As that date gets closer, a few more details have emerged regarding what that fix will entail. If these reports are to be believed, it won’t be cheap for VW.

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Citing an anoymous source, the Associated Press reports that Volkswagen has agreed to pay out as much as $10.2 billion in the U.S., most of which will be used to compensate owners of cars equipped with emissions-cheating software. Each payout for the nearly 500,000 U.S. car owners affected will be between $1000 and $7000, with most owners set to receive around $5000. The AP source said that the exact figures could change before the settlement is announced on Tuesday.

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An earlier report notes roughly $3.5 billion of that alleged settlement money will go to U.S. federal government and California regulators. That report also noted that it might be impossible for VW to fix the affected cars, due to the huge logistical challenges of trying to repair nearly 500,000 cars and the fact that there still is no regulator-approved fix for the 2.0-liter TDI engine. Given that many of the cars are likely never to be fixed, Bloomberg reports that a focus of the fines will be funding cleanup from diesel emissions in a program modeled after the Diesel Emissions Reduction Act, which replaces or retrofits older diesel buses and the like.

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• VW TDI Solution Could Cost $10 Billion and Not Fix the Problem

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• Volkswagen’s New Ideas: 30 EVs by 2025, Ride Sharing, and Lots of Cuts

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• VW Diesel Emissions Scandal Complete Coverage

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If the $10.2 billion total is factual, it will be far and away the largest compensation ever paid by an automaker, greatly outstripping the $100 million settlement paid by Hyundai and Kia after an EPA fuel-economy-rating scandal in 2014. And of course, the number could only get bigger for Volkswagen: The automaker still has to present a solution for the millions of European owners affected by the TDI emissions cheat.

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A version of this story originally appeared on Road & Track via AR Revista.

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from Car and Driver Blog http://blog.caranddriver.com/vw-diesel-owners-to-get-1000-to-7000-in-proposed-settlement/