Rumored: Volkswagen Could Pay Close to $10.2 Billion to Settle the Diesel Emission Scandal
This afternoon, Bloomberg and Associated Press have learned from various sources that Volkswagen will pay $10.2 billion as part of a settlement over the diesel emission scandal. The majority of that money will go towards compensation to owners and possibly fixing vehicles.
Compensation will range from $1,000 to $7,000. The final amount will depend on various factors such as the age of the vehicle. Two sources tell Bloomberg that owners of TDI vehicles could face complex calculations to figure out how much cash they might receive from Volkswagen, which might cause them to get upset. Along with the compensation, Volkswagen will offer owners the choice of either having their vehicle fixed for free or be bought back at a value before the scandal broke.
One question up in the air is whether or not the fix Volkswagen will do to affected TDI model meet the satisfaction of the EPA.
"Any fix likely would require a bigger catalytic converter or injection of the chemical urea into the exhaust to help neutralize the pollution," a source explained to The Associated Press.
Other parts of the settlement will be used to pay off penalties from U.S. Government agencies and to set up a fund to clean up air pollution.
The sources are quick to point out that these details could change before they are presented to U.S. District Judge Charles Breyer next Tuesday. Also, this settlement deals with only the 2.0L TDI four-cylinder. The 3.0L TDI V6 is being dealt with separately.
Pic Credit: Volkswagen