US: VW’s customers to be generously compensated image

The US owners of around 600,000 over-polluting Volkswagen cars will be offered generous compensation packages, the head of automaker’s claims fund told a German paper.

More than four months after the scandal broke out, Volkswagen still has not won an approval from the regulators to fix any of the roughly 600,000 diesels affected by the cheating device in the United States. For the owners that seek justice by filing complaints, Europe’s largest automaker said back in December it named compensation expert Ken Feinberg to create and administer a compensation programme. Feinber, who previously administered claims funds for the September 11, 2001 terrorist attacks, BP Plc Deepwater Horizon oil spill and General Motors ignition switch crashes, recently reiterated that Volkswagen would be generous with the US customer who bought cars that emit up to 40 times the legally allowable emissions by offering some substantial compensation packages. However, the carmaker still has not decided whether vehicle owners will be offered cash, buy-backs, repairs or replacement cars, he told Frankfurter Allgemeine Sonntagszeitung. Feinberg’s original plan was to set the claims fund within 60 to 90 days, but there were some delays, he admitted. “My hands are tied as long as VW and the authorities have not overcome their differences,” Feinberg said.

Separately, the German automaker announced last week it was delaying the reporting of the annual results and the annual general meeting. Volkswagen said the postponement of the publication of its financial results for 2015 was “due to remaining open questions and the resulting valuation calculations relating to the diesel emissions issue.” A source at the company told to Reuters the 2015 results and the annual shareholders’ meeting, due to be held on April 21, would both be delayed by 4-6 weeks.

Via Reuters