The German automaker will have to pay up to $14.7 billion in America to settle the issues with the 2.0-liter TDI engine as per the Dieselgate scandal.
The emissions scandal has brought numerous problems for the world’s second largest carmaker, and following almost five months of trial Volkswagen has been granted final approval by the courts to put the 2.0-liter TDI settlement into effect. Judge Charles R. Breyer of the United States District Court for the Northern District of California has allowed the settlement to take effect in order to satisfy private plaintiffs represented by a court-appointed Plaintiffs’ Steering Committee (PSC). The claim has to do with the nearly 500, 000 units of Volkswagen and Audi TDI equipped cars – but only 340,000 owners actually took part in the suit. The recently approved deal will reach a record-setting $14.7B claim, the biggest civil settlement ever reached with an automaker.
After this, the company will start the buyback program as early as mid-November, with 900 new employees hired to handle these buybacks. VW will use $10.33 billion for the vehicle buybacks alone, with the rest on programs to offset the excess emissions and development of zero-emissions vehicles. The automaker has also agreed to spend $1.21 billion in compensation for its 652 U.S. Volkswagen-branded dealers, while $600 million will be used for other claims from 44 US states.