Volkswagen’s settlement over the diesel scandal in the United States will carry a price tag way over the 10 billion dollars that were previously reported.
June 28 is D-Day for Volkswagen, as Tuesday is the deadline imposed by the court over the diesel agreement between Volkswagen, US regulators and owners. Previous media reports indicated the deal to worth around 10 billion dollars, but this total has now jumped by 50 percent. According to new sources, the deal will force Volkswagen to spend 10.03 billion dollars for compensation and buy-backs for around 482,000 affected owners, another 2.7 billion dollars for fines imposed by the Environmental Protection Agency and the California Air Resources Board and 2 billion dollars that the automaker will have to invest over a 10-year time-frame into the development of environmentally friendly technologies.
The carmaker is also expected to announce a settlement with various states, including New York, for about 400 million dollars, Bloomberg reports. Insiders also said that owners of 2.0-litre diesel cars would get at least 5,100 dollars in compensation along with the estimated value of the vehicles, with some of them to receive as much as 10,000 dollars.
Customers will also have an option to accept a buy back from Volkswagen or the company to repair their vehicles. However, the possibility of repairing the cars is currently under doubt, as the US regulators have not yet approved the proposed fixes. VW has until the end of 2018 to come up with a viable update, one of the people said.