VW prepared $10 billion for US dieselgate image

Volkswagen has reportedly put together a 10-billion-dollar plan to finally address the emissions scandal in the United States.

The deadline over the diesel agreement between Volkswagen, US regulators and owners of the affected cars has recently been extended by one week by a federal judge and all sides have now until June 28 to reach common ground. Even if the finals details of the deal are not yet fully known, a person familiar with the matter told Bloomberg that Volkswagen will submit a detailed plan that is worth around 10 billion dollars, among which 6.5 billion dollars will be directed to car owners of the 482,000 over-polluting diesels and 3.5 billion dollars to the US government and California regulators.

What is known so far about the deal is that it includes an option for customers to accept a buy back from Volkswagen or the company to fix their vehicles. However, the possibility of repairing the cars is under doubt, as the US Environmental Protection Agency and the California Air Resources Board have not yet approved VW’s proposed fixes, if they ever will, that is.

The German carmaker set aside 16.2 billion euros (18.2 billion dollars) to cover the costs of the scandal worldwide so far, including nearly 8 billion euros for buy backs and repairs. Meanwhile, Volkswagen’s recall plan in Europe is far behind schedule, as Germany’s Federal Motor Transport Authority has not still approved the technical solutions for all the 8.5 million affected cars in the region.

Via Bloomberg