The German automaker’s bill in America for cheating on emissions tests has amassed at least $25 billion after the company and a federal judge worked out a $1.22-billion fine for the cheating 3.0-liter TDI engines.
The German group will now have to fix or buy back 80,000 vehicles in the United States equipped with the engines, a costly affair considering that premium Audi models are also packing it. Volkswagen will have to give away between $7,000 and $16,000 to each owner of a 3.0-liter TDI vehicle who wants to keep the car and have it fixed through the normal recall process. According to Reuters, a spokesperson for the company commented this settlement “marks an important milestone for Volkswagen and means that a resolution is available to all of our customers.”
U.S. District Judge Charles Breyer was behind the penalty approval – about a year after he also signed off the settlement for Volkswagen’s smaller 2.0 TDI engines. Last year VW has decided to pay $14.7 billion and also fix or buy back 475,000 autos with the engine – with more than half being bought back or fixed already. The Judge has also sanctioned German parts supplier Bosch through a linked settlement, with the company having to pay $327.5 million to owners of diesel Volkswagen cars in the US because it helped develop the engines.