Sorry, European Volkswagen Owners - You Won't Get a U.S.-Style Payout
After agreeing to fork over up to $14.7 billion to U.S. owners (and the environment) in its U.S. diesel emissions scandal settlement, Volkswagen is saying Nein! to a similar buyback in Europe, because that kind of payout would just be insane.
According to Left Lane News, the embattled automaker isn’t planning any compensation to its clients on the Continent, meaning its 2.0-liter TDI models will go on well into the future, albeit in a slightly detuned form.
The process of solving Volkswagen’s diesel woes is more advanced in the U.S. than overseas, where 8.5 million of its 11 million defeat device-equipped models were sold. Not only are there more models to recall and fix, the laws are different.
Elzbieta Bienkowska, the European Union’s industry commissioner, recently stated that it wouldn’t be fair for European owners to miss out on a U.S.-style deal, but Volkswagen says it just isn’t possible to offer one.
In a June 30 meeting with the commission, CEO Matthias Müller replied to Bienkowska’s comment, stating, “You don’t have to be a mathematician to realize that compensation at arbitrarily high levels would overwhelm Volkswagen.”
Under the U.S. settlement, owners will have their 2.0-liter TDIs bought back at pre-scandal values, and will receive cash compensation of up to $10,000. Emissions requirements in the EU aren’t as strict as those mandated by the U.S. Environmental Protection Agency, so a diesel Eurofix doesn’t have to be as complicated or as costly.
After a delay earlier this year, the slow, phased recall of afflicted models continues in Europe. American owners will start getting their buyback notices as early as this fall.
[Image: © 2015 Mark Stevenson/The Truth About Cars]
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