Owner Payouts Revealed as Volkswagen, Bosch Settle 3.0-liter Diesel Claims for $1.55 Billion
Owners of certain Volkswagen, Audi and Porsche vehicles caught up in the diesel emissions scandal will receive hefty payouts, even if their vehicles aren’t bought back by the manufacturer.
Volkswagen and supplier Robert Bosch GmbH have agreed to a settlement worth a combined $1.55 billion, Reuters reports. The agreement covers about 80,000 vehicles outfitted with emissions-cheating 3.0-liter diesel V6 engines — 20,000 of which will return to the automaker for good.
While parting with a beloved luxury vehicle can be difficult, cold hard cash has a way of softening the emotional blow.
According to court documents, Volkswagen’s share of the settlement amounts to $1.22 billion, while Bosch will chip in $327.5 million for its role in the scandal. The U.S. Federal Trade Commission, which sued VW in the wake of the scandal, reportedly backed the deal 100 percent. Some of the cash will go towards environmental initiatives.
Because of its older engine design, Volkswagen doesn’t have a hope in hell of fixing the more aged 3.0-liter diesel models. As such, all 2009-2012 model year vehicles will be bought back, then sent into the automotive afterlife. Vehicles sold from 2013 to 2016 will be brought to compliance through a fix, with the owners receiving a nice little payout for their troubles.
Of course, that’s if VW is actually capable of providing a fix. There’s been no approved fix as of yet, though the automaker remains confident that a technical solution is on the way. After reaching an initial settlement with owners shortly before Christmas, VW made sure everyone knew about its Plan B — basically, if the Generation 2 engine fix fails to satisfy regulators, it will buy back or terminate the leases of those vehicles. The automaker could also seek permission for a partial fix, reducing nitrogen oxide (NOx) emissions.
So, what can owners expect in terms of greenbacks?
For the buyback crowd, VW will write checks for $7,500 on top of the value of the vehicle. If you’re in line for a fix, expect compensation ranging from $7,000 to $16,000, plus an extra $500 if the fix ends up sapping the vehicle’s performance.
But wait, there’s more! More cash, that is. Bosch, which refuses to admit any wrongdoing in the scandal, will fork over its own monetary penance. The sum should amount to about $1,500 for each 3.0-liter diesel owner.
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