VW Dieselgate Nearing U.S. Conclusion As Parties Agree To $3B Settlement
Far more quickly than anyone has been expecting, it looks as if Volkswagen may be on the verge of settling its emissions rigging challenge and forging ahead. According to sources, the automaker and the U.S. Department of Justice (USDOJ) are near agreement on a resolution to civil and criminal probes. The investigations were launched in the wake of the Dieselgate scandal.
Settlement Spelled Out
Sources told Reuters Friday that the agreement would require:
- VW to pay a penalty of over $3 billion
- VW’s oversight by an outside monitor
- VW to undergo “significant reforms” arising from the automaker’s self-inflicted scandal
Though all parties acknowledge the pact could still change or that it might even fall apart, a deal could be announced by as early as next week, a week ahead of the installation of a new administration in Washington. A spokesman for the automaker, speaking from the automaker’s headquarters in Wolfsburg, Germany, declined to comment, saying the talks were continuing.
Volkswagen has already agreed to pay up to $17.7 billion to settle claims by consumers, federal and state regulators and dealers. Owners of 2.0-liter four- and 3.0-liter six-cylinder turbodiesels will receive up to $11.03 billion in compensation. The bulk of the compensation will go to four-cylinder turbodiesel owners who are to receive buybacks and compensation, while the majority of the 3.0-liter owners, 60,000, will have their vehicles fixed and receive compensation while the remaining 20,000 will be given a buyback and payment. Volkswagen Settlement Still Under Wraps
Also, VW has agreed to pay another $1 billion to regulators to settle the 3.0-liter portion of the scandal. The automaker will also pay $2.5 billion into a mitigation fund to pay for damage caused by diesel emissions and $2 billion to fund electric vehicle and infrastructure improvements. Also, VW will pay dealers $1.2 billion in compensation. VW Pays $200 Million More To Settle Scandal
The $3 billion agreement raises the tab for Dieselgate to a bit less than $21 billion.
Dieselgate Burst Onto Scene
sDieselgate, as the entire diesel-cheating scandal has come to be known, burst onto the scene in September 2015 At that time, VW admitted installing a “defeat device,” that enabled its vehicles to pass emissions tests, though they had failed.