Volkswagen Will Continue Shelling Out Dieselgate Dough

Matt Posky
by Matt Posky

Even though the United States has already penalized and fined the crap out of Volkswagen for selling vehicles equipped with emissions-cheating defeat devices, the company remains in hot water. Earlier this month, Germany imposed a fine of $1.2 billion over the “dieselgate” scandal.

“Volkswagen accepted the fine and it will not lodge an appeal against it,” the company said. “Volkswagen, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome.”

On Monday, the U.S. Ninth Circuit Court of Appeals also upheld a $10 billion settlement between Volkswagen and the owners of 2.0-liter TDI vehicles that came equipped with the illegal software. The ruling pertains to roughly 475,000 customers. VW agreed to offer owners of the 2.0-liter diesels between $5,100 and $10,000 in compensation, in addition to the value of the vehicle.

Thus far, VW has agreed to pay at least $25 billion in the United States over claims from environmental regulators, states, dealerships, and affected customers. It’s also in the midst of buying back or repairing vehicles, a process that should continue continue through the end of 2019.

According to Reuters, the three-judge panel said that, in dismissing a number of objections to the original settlement, it “delivered tangible, substantial benefits to class members, seemingly the equivalent of — or superior to —those obtainable after successful litigation, and was arrived at after a momentous effort.”

Despite its best efforts, Volkswagen is still having trouble getting past the scandal. While the federal government would like to get its hands on former VW chief executive Martin Winterkorn, it seems satisfied for the moment. But problems have persisted in Germany. Audi CEO Rupert Stadler was arrested last month and suspended from his position following a string of raids at Volkswagen Group’s various facilities.

The company also continues spending billions on reclaiming the affected 2.0-liter vehicles, as well as a smaller number of 3.0-liter diesels. Meanwhile, some states have enacted consumer fraud suits of their own. While these claims are peanuts in comparison to the fines imposed by the federal government, they’ve still added millions to the company’s already colossal tab.

[Image: Volkswagen Group]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Rocket Rocket on Jul 10, 2018

    No sympathy from this former TDI owner.

  • Speedlaw Speedlaw on Jul 10, 2018

    Meanwhile, purchased loopholes by truck refurbishers allow a new body and frame, plus a rebuilt diesel which does not meet current standards, to hit the roads. Big Rigs are rolling coal legally. While I have zero sympathy for VW, having read all about the exact, designed in cheat software, and having had a TDi which blew the DPF at 82k miles, I'd think I was being picked on. If VW knew a few political contributions would be all that was needed, they could have saved millions. Meanwhile, "Gliders" sail through a loophole the size of an 18 wheeler.

  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
  • ToolGuy Ford is good at drifting all right... 😉
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