Volkswagen Fine More Likely to be $3.2B than $18B

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Volkswagen Fine More Likely to be $3.2B than $18B

Volkswagen is more likely to see a fine in the area of $3.2 billion than $18 billion, according to a recent analysis.

While it’s still possible that the Environmental Protection Agency (EPA) will hit Volkswagen with the maximum fine of $18 billion for cheating on diesel emissions tests, The Truth About Cars did an analysis to determine what is more likely to happen based on past violations. Last year, the EPA fined Hyundai and Kia $100 million for releasing 4.75-million metric tons more of greenhouse gases than originally reported for more than 1.1-million cars.

By using the EPA’s own penalty worksheet, a vehicle’s engine is classified for “gravity” at 250 horsepower. From there, each horsepower up to 10 hp is an additional $80 fine while between 11-100, the fine is $20. The fine is $5 for 150 to 250, meaning Volkswagen’s adjusted penalty would be $3,350 per engine.

SEE ALSO: VW Diesels May Have Caused Nearly 1M Tons of Extra Pollution Annually: Report

The agency then adds a multiplier depending on the severity of the infraction and a “major” infraction incurs a 6.5 multiplier. From there, that means each Volkswagen engine would be fined $21,775 before scaling.

From there, TTAC calculated that for the first 10 engines, Volkswagen would be penalized the full amount of $21,775 for each vehicle. For the next 90 cars, it will be penalized 20 percent per engine, four percent for the next 900 cars, 0.8 percent for the following 9,000 cars, 0.16 percent for the next 90,000 cars and then 0.032 percent for the remaining 382,000 units.

That’s not all, since Volkswagen will then be fined for non-remediation, or several years of lying. That fee is up to 30 percent for each engine, calculating to be more than $3.14 billion, which is actually the bulk of the total fine. VW then gets hit for company size, which could calculate to around $105 million, based on the German automaker’s $126-billion market cap in May 2015.

In total, that adds up to $3,262,518,776 – a far cry from the maximum $18-billion penalty Volkswagen could be facing.

[Source: The Truth About Cars]

Discuss this story on our Volkswagen Forum

  • smartacus

    wow.
    That figure is still over 3x as high as GM’s settlement for actually killing people

  • smartacus

    **SUZUKI has sold off its 1.5% of VW to Porsche Automobil Holding SE
    (Porsche now owns a commanding 52.2% majority stake in the company)

  • Mike

    You have no idea how much of those released VW toxins may have contributed to environmental lung cancer here in the U.S. BTW, Government Motors sucks too.

  • smartacus

    VW couldn’t truly join in the top 3 Global Automakers until they too had multiple deaths attributable to them like Toyota and GM

  • Mike

    Don’t be forgetting Ford. Those Pintos and Explorers sure took quite a few lives.

  • smartacus

    Don’t forget the car that started it all; the Corvair

    -the Pinto can be explained away by the fuel tank being designed before NHTSA came into existence; and even then, only 27 people died.

    Ford Exploder had defective Firestone Wilderness AT tires.
    *By sheer coincidence; in 1999, i was tearing it up on the PCH with no guardrail and no traction/stability control in a 1999 Exploder rolling on Wilderness AT tires. How i didn’t meet my fiery death falling down a cliff into the ocean like a Hollywood movie; i dunno.

  • Mike

    I’ve always liked Ford, from the Taurus in the 80’s,especially the SHO(SHARP!)to my dad’s 80 Bronco which I learned to drive in, and I also learned to drive standard on. If they brought the Bronco back, I’d probably buy one.

  • smartacus

    original SHO had that slick Yamaha V6.
    -yes they SHOULD bring back the Bronco, with an optional Triton V10