Volkswagen‘s US settlement will now likely cost the German automaker over $15 billion.
Originally expected to cost around $10 billion, Volkswagen will reportedly now pay up around $10 billion to car owners and another $5 billion in fines and penalties. The settlement is expected to be filed in a San Francisco court tomorrow and compensation payments to owners could be as high as $10,000 instead of the $7,000 reported earlier. It is believed that the compensation figure has jumped because the parties have changed their estimates on what it would take to get around 85 percent of owners to trade-in their vehicles under the settlement.
As for the fines, the automaker will pay $2.7 billion to the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), while an additional $2 billion will be spent on clean-emissions technology.
The agreements between Volkswagen and the U.S. Department of Justice, the EPA and CARB will be filed with Judge Charles Breyer of the U.S. District Court for the Northern District of California by noon Pacific Time on Tuesday.
Discuss this story on our Volkswagen Forum