Volkswagen expected to announce USD$15 billion settlement for United States diesel emissions scandal

volkswagen logo wm

Volkswagen AG is expected to pay up to USD$15 billion (more than RM61 billion) as settlement to owners of diesel Volkswagen vehicles, as well as government regulators due to its diesel emissions cheating scandal. This will likely be one of the largest consumer class-action settlements ever in the United States.

According to reports by Reuters and The New York Times, the settlement includes a maximum of USD$10.03 billion (around RM40 billion) to buy back about 475,000 affected Volkswagens from owners at pre-scandal prices. Additionally, a separate settlement with US state attorneys is expected to be more than USD$500 million (around RM2 billion).

For vehicle owners, a cash compensation will likely be offered to each, ranging from USD$5,100 (RM20,776) to USD$10,000 (RM40,747). Previous owners who may have sold their diesel vehicles after the scandal became known last year are also eligible for compensation, but at only half the rate of the compensation being offered to current car owners.

Owners will have until December 2018 to decide whether to sell back vehicles or have their vehicles fixed to meet emissions standards. Even so, regulators have yet to approve fixes for Volkswagen vehicles fitted with the 2.0 litre turbocharged four-cylinder diesel engine. There are three generations of said engine fitted in vehicles from the year 2009-2015, all possibly requiring different fixes.

Even after the imminent announcement, Volkswagen must still come to a consensus with US regulators on whether it will offer to buy back 85,000 larger Porsche, Audi and Volkswagen cars and SUVs due to the 3.0 litre TDI V6 engine, where it was discovered that the engine’s nitrogen oxide (NOx) emissions is up to nine times of the EPA’s standard.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard's strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Albert says cannot persoal his foreign overlords or he will potong the kepla of whomever who dare to persoal. So I wun persoal.

    Like or Dislike: Thumb up 1 Thumb down 8
  • Fieza on Jun 28, 2016 at 7:17 pm

    Honda no announce settlement for bursting airbags scandal??

    Like or Dislike: Thumb up 1 Thumb down 1
  • Suzuka Mayojita on Jun 28, 2016 at 8:11 pm

    I think VW better close shop especially in Malaysia a country we emphasize so heavily much on environmental pollution.

    Like or Dislike: Thumb up 3 Thumb down 3
  • Saying Volkswagen is in deep sh*t would be an understatement. 15 bil is only for the States. The settlement for European countries are not yet revealed.

    Like or Dislike: Thumb up 4 Thumb down 1
    • Kunta Kinte on Jun 29, 2016 at 7:52 am

      What about Malaysia? is VGM also going to give compensation or a buy back? Malaysian VW buyers has had it worse than dieselgate. the VW cars in Malaysia are inherently faulty and defective due to their DSG.

      So Malaysians actually suffer more than the Mat Salleh dieselgate victims in the US. At least the US dieselgate victims don’t need to go into SC non stop or break down in the iddle of the highway every other month.

      Like or Dislike: Thumb up 8 Thumb down 2
      • timbuktu on Jun 29, 2016 at 1:35 pm

        Kunta Kinte, get your priorities right and bark on Honda for compensation on the live loss due to the Takata airbag incidents. Whatever “suffering” by VW owners is nothing compared to the lives lost in a Honda.

        Like or Dislike: Thumb up 2 Thumb down 1
  • Boring kunta on Jun 28, 2016 at 10:32 pm

    The kunta kinte already gone back to his country after talking so much rubbish and trying hard go stir angry political comment here.

    Like or Dislike: Thumb up 23 Thumb down 20
    • Dr Vida on Jun 28, 2016 at 11:23 pm

      I am prepared to make the $15 billion payment in return for equity in VW. Looks like a good platform to sell my facial skin whitening products as part of an integrated offering. I’m going to lead the next wave of disruptors, Tesla you have been warned.

      Like or Dislike: Thumb up 7 Thumb down 1
    • U can bet he’ll be back. After all, they sure r angry after losing Sarawak, Sg Besar and Kuala Kangsar.
      Thats 3 strikes in a row, and in baseball terms: YEERRRR OUUTT!

      Like or Dislike: Thumb up 27 Thumb down 22
      • Kunta Kinte on Jun 29, 2016 at 7:53 am

        poor john, everything is a game for you. Sendiri kena tipu pun tak tahu! bangang!

        Like or Dislike: Thumb up 1 Thumb down 23
        • When DSG breakdown easy, blame MY hot weather for unsuitable to use DSG.
          When dun replace airbags fast enuff, blame the owners.
          When dun get enuff votes, blame the voters.

          See the game, play the game.

          Like or Dislike: Thumb up 6 Thumb down 9
        • Kunta Kinte on Jun 29, 2016 at 11:33 am

          poor john, so bored, can dislike people so many times. So free ah john? Oh I forgot, after this you will go back to sleep again. Sleeping on the job is okey kan?

          Like or Dislike: Thumb up 4 Thumb down 6
  • $15b to settle dieselgate which did not causing and death. Then what about Takata?

    Like or Dislike: Thumb up 0 Thumb down 4
  • Sam Loo (ori1) on Jun 29, 2016 at 12:56 pm

    They can use USD15 trillion to settle but the brand name has been damaged beyond repair

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required