Volkswagen Ag has agreed to pay $15 billion to settle claims from its emissions cheating scandal, according to a court document filed Tuesday in a San Francisco federal court.
According to settlement documents, the total payout includes three parts. Volkswagen will set aside $10.033 billion to cover buybacks and fixes of nearly 500,000 diesel-powered vehicles. The company will also spend $2 billion to invest in green energy technology and $2.7 billion to federal and California regulators for an environmental remediation fund.
Under the terms of the agreement, car owners have the choice of selling back their vehicles to Volkswagen or have their vehicles fixed to meet regulator’s emissions standards. The repurchase price will depend on vehicles’ market value at September before regulators disclosed the emissions cheating. The option for fixing the vehicle is still waiting for approval of an appropriate modification by the Environmental Protection Agency.
In either case, all car owners will receive additional cash compensation of between $5,100 and $10,000. The company will rise $10.03 billion for nearly 482,000 affected vehicles’ owners. The affected vehicles model including Jettas, Passats, Beetles, Golfs and Audi A3s between 2009 and 2015.
“Consumers have been massively misled by Volkswagen and this settlement in the U.S. recognizes the damage suffered by car drivers,” said Monique Goyens, general director of the European Consumer Organization, a Brussels-based consumer lobby. ”It is inconceivable that consumers in the EU get treated differently.