Volkswagen Will Fork Out $10.2 Billion to Settle Emissions Claims, Hand Owners Up to $7,000
Owners of the 482,000 2.0-liter TDI models caught up in the diesel emissions scandal will get cash compensation tied to the age of their vehicle, anonymous sources said today.
Volkswagen won’t release details on its buyback/fix/remediation plan until Tuesday of next week, but sources briefed on the matter blabbed to the media despite a court-imposed gag order. The Associated Press puts the cost of settling the U.S. fallout at $10.2 billion, with some of that money going towards government penalties.
It’s already known that Volkswagen plans to buy back (or fix, at the owner’s request) 2.0-liter diesel models sold from 2009 on. What’s murky is whether the figures quoted by the sources relate to the vehicle buyback or the separate compensation expected to be handed to owners.
The cash payments will range from $1,000 to $7,000, depending on the age of the vehicle and other factors. Those amounts could change by next Tuesday, the sources stressed.
According to Bloomberg, “owners will be faced with complex calculations to figure out how much cash they might receive from Volkswagen … which could upset them and harm the carmaker’s relationship with buyers even further.”
Readers can learn more about the body blow to Volkswagen’s reputation (and what it will take to recover) here.
Part of the U.S. funds, drawn from an $18.2 billion cash pile Volkswagen set aside this spring, will go to remedy the environmental damage caused by the diesels over the last six years. The sources say any environmental fund will probably model itself after an existing EPA-funded cleanup program.
The Diesel Emissions Reduction Act provides grants to areas with high levels of diesel pollution. Mainly, the cash goes to efforts like retrofitting old buses and replacing industrial truck fleets. An administrator appointed by the Justice Department will hand out the cash, sources said, with funds going to the state level for distribution to local green programs. Each project will be audited by the administrator.
No details on the size of the environmental fund are available. Regulators first need to figure out the amount of smog the diesels created since 2009, and how much emissions the remaining vehicles will emit.
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- Paul Mezhir As awful as the styling was on these cars, they were beautifully assembled and extremely well finished for the day. The doors closed solidly, the ride was extremely quiet and the absence of squeaks and rattles was commendable. As for styling? Everything's beautiful in it's own way.....except for the VI coupe....it's proportions were just odd: the passenger compartment and wheelbase seemed to be way too short, especially compared to the VI sedan. Even the short-lived Town Coupe had much better proportions. None of the fox-body Lincolns could compare to the beautiful proportions of the Mark V.....it was the epitome of long, low, sleek and elegant. The proportions were just about perfect from every angle.
- ToolGuy Silhouetting yourself on a ridge like that is an excellent way to get yourself shot ( Skylining)."Don't you know there's a special military operation on?"
- ToolGuy When Farley says “like the Millennium Falcon” he means "fully updatable" and "constantly improving" -- it's right there in the Car and Driver article (and makes perfect sense).
- Master Baiter New slogan in the age of Ford EVs:FoundOnRoadDischarged
- Albert Also owned a 1959 Continental Mark IV coupe for 20 years and loved every minute!
I am at the other end than Kyree 2011 w 125,000 miles, I know they do not want to fix mine but they may fix the ones w the ad blue tanks already installed, I bought mine new and it is paid off, so not sure what I will do, not really looking for a car payment right now, let's see if VW would make it worth my while, I would consider another if the deal was right, also what happens to the 2016 TDI that had a stop sale on.?.?
If I'm reading this (and past articles) correctly, this cash payment is separate from any buyback offer? We have a 2013 Passat TDI with a couple CarFax hits on it that we're looking forward to returning to the good folks at Volkswagen. If it weren't for the repairs (someone backed into it, then my wife hit a deer about a week after the first repair was complete) we'd probably keep it and run it into the ground as we originally planned, but why not take advantage of an opportunity?