A US judge signals that approval of a proposed buyback and compensation settlement from VW is likely in the wake of dieselgate
19 October 2016

A proposed buyback and compensation offer from Volkswagen looks set to go ahead after a US judge said he was “strongly inclined” to approve it.

The settlement will compensate 475,000 VW owners in the US affected by the dieselgate scandal to the tune of $10.03 billion dollars (£8.15bn). An extra $4.7bn (£3.8bn) has been earmarked for environmental pollution offsetting and the promotion of EVs (electric vehicles).

On Tuesday, US district judge Charles Breyer said he will make a final decision by 25 October. He was speaking at a hearing in San Francisco, in which lawyers and some VW owners argued that the deal didn't go far enough, and that the money offered would not cover expenses such as extended warranties, maintenance and government licensing fees. However, lead counsel for owners, Elizabeth Cabraser, said that while not perfect, the offer represented a “fair, reasonable and adequate” settlement.

Judge Breyer told those present that he would consider the objections and whether to make any changes to the offer, but said it was imperative to act quickly.

He also gave preliminary approval to an agreement with VW dealers in the US. Earlier this month, VW agreed to pay 652 dealers a total of $1.21bn (£939 million) in compensation as part of a deal that will see the manufacturer buy back certain 'unfixable' models. The company is offering between $5,100 and $10,000 compensation per car, in addition to the repurchase price, and has hired 900 people to handle the process.

A deal to fix some of the 2.0-litre models affected by the emissions scandal is still being discussed.

As part of its settlement, VW looks set to pay more than $600m to 44 US states and spend $2bn promoting zero-emissions vehicles and infrastructure, as well as another $2.7bn to offset diesel pollution. These measures also need approval from Judge Breyer.

Separate discussions are ongoing about whether the Volkswagen Group should buy back some 85,000 VW, Porsche and Audi vehicles and offer compensation to their owners. These concern 3.0-litre-engined vehicles that also exceeded emissions standards. Judge Breyer has arranged a hearing on that issue for November 3.

Despite the latest arrangements, VW still faces the possibilities of massive fines from the US Government as criminal investigations into the scandal continue. The German manufacturer has admitted that it used software fitted in vehicles to falsify emissions data during official tests, affecting millions of vehicles worldwide.

Read more:

Dieselgate - one year on

British government could prosecute Volkswagen Group 

VW to fix affected cars by late 2017

Phill Tromans

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Comments
7

19 October 2016
We pay the most and will probably pay even for the USA compensation and European customers will probably not get any thing at all in compensation.looks like aboout £15 k per car if you exclude the dealer compensation.

19 October 2016
Ski Kid wrote:

We pay the most and will probably pay even for the USA compensation and European customers will probably not get any thing at all in compensation.looks like aboout £15 k per car if you exclude the dealer compensation.

Ski Kid are you high? didnt understand a word you said.

Red Devil

19 October 2016
simple Uk and Europe pay way more than the USa on vehicle prices exc taxes and they get the compo ,with uas paying it via our higher prices simple.Expect a price increase to pay for this .yes we all know about the Euro?.certainly the prices did not come down when the pound was high a year ago , nearly hit 1.5 euros to £ .

19 October 2016
simple Uk and Europe pay way more than the USa on vehicle prices exc taxes and they get the compo ,with uas paying it via our higher prices simple.Expect a price increase to pay for this .yes we all know about the Euro?.certainly the prices did not come down when the pound was high a year ago , nearly hit 1.5 euros to £ .

19 October 2016
The sooner this ends the better. Then we can move on to the UK and Europe. Two questions remain re: the US settlement. 1. The US authorities have not approved any of the fixes Volkswagen has so far offered? 2. Will this settlement include the 3L diesel engine Volkswagen uses in Porsche Cayenne and Audi Q7?

19 October 2016
Unrealistic I know, and some compensation may be due, but it would have been far more beneficial if the dieselgate scandal had not cost VW a penny but instead they were banned wholesale from selling diesel powered passenger cars. This would have forced them to plough their considerable financial and engineering resources into developing hybrid and EV models without cutting any corners. The sheer scale of the operation would force other manufacturers to develop and improve their non-diesel offerings and the whole game would move on a lot faster in a much more healthy direction. Instead the company has to slash development costs, the cars won't be as varied or, perhaps, as good and the whole industry can move that bit slower towards a healthier, more sustainable future. Sigh.

20 October 2016
Shrub wrote:

Unrealistic I know ... but it would have been far more beneficial if ... they were banned wholesale from selling diesel powered passenger cars... Sigh.

In the US the Volkswagen Audi Porsche are banned from selling diesel cars. Yet a decent wish on your part. Hopefully the VW will take your suggestion and invest the savings they are making in Europe on speeding up work on alternative power trains - an area where much smaller car makers like Kia and Hyundai easily supersede them.

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