Volkswagen US Settlement Now Likely to Cost Over $15B
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.
SEE ALSO: Volkswagen Diesel Owners to Get $7,000 Payout
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.
[Source: Bloomberg]
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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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is there any chance VW USA will not be scuttled in favor of Skoda-pop?
Not an unexpected price tag.