Volkswagen Readies $10B to Pay for Cheating Diesel Cars in US

Jason Siu
by Jason Siu

Volkswagen will reportedly submit a $10 billion plan to fix half-a-million cheating diesel cars in the U.S.

The German automaker is still waiting for the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) to approve the German automaker’s proposed fixes, but Volkswagen is ready to pay $6.5 billion to car owners and $3.5 billion to the U.S. government and California regulators in fines.

Lawyers for car owners are set to submit the proposed deal to the San Francisco federal judge overseeing U.S. lawsuits by June 28, and the settlement will include options for buybacks or for owners to terminate leases early.

SEE ALSO: Volkswagen Could Axe up to 40 Models

Under the proposed deal, current Volkswagen diesel owners will have the option to have their cars repaired, but it’s a possibility that Volkswagen might not even get around to fixing all the affected cars. The company has the capacity to fix about 5,000 vehicles a week under the settlement, which means it would take almost two years until it gets around to repairing all 482,000 cars.

The company is still subject to lawsuits in Germany and faces a criminal probe there as well as in the U.S.

[Source: Bloomberg]

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Jason Siu
Jason Siu

Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.

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