More details on Volkswagen’s $10-billion diesel scandal settlement have surfaced.
The German automaker will reportedly pay between $1,000 and $7,000 to diesel vehicle owners, in addition to either fixing or buying back the affected cars. The settlement is still being negotiated for submission to a federal judge next week, and the payment amount will depend on the vehicle’s age and other factors. Volkswagen will also have to agree to fund an environmental remediation program that will help undo the damage the 482,000 diesel cars caused by emitting as much as 40 times the legal amount of nitrogen oxide.
It is expected that Volkswagen won’t be able to repair all of the cars affected to the satisfaction of the Environmental Protection Agency (EPA), which means the company will do buybacks or make extra payments to the environmental fund.
Since the EPA and the California Air Resources Board (CARB) has yet to approve Volkswagen’s proposed fixes, there’s no guarantee currently that a fix will be put in place. Under the agreement, the automaker will buy back cars at their value before the scandal broke in September 2015.
As we reported earlier, lawyers for the affected car owners are due to submit the proposed deal to the San Francisco federal judge overseeing U.S. lawsuits by June 28.
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