Volkswagen Will Continue Shelling Out Dieselgate Dough

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]