VW could be forced to pay billions of dollars in fines as the troubled car maker looks to settle compensation claims in the US
Darren Moss
1 February 2017

Volkswagen will pay at least $1.26 billion (about £1bn) in fines and have to fix or buy back almost 80,000 cars in the US fitted with its 3.0-litre TDI diesel engine.

Court documents filed yesterday evening also revealed Volkswagen could be forced to pay as much as $4.04bn in fines if US regulators don't approve the planned fixes for those engines.

In December last year, Volkswagen agreed to buy back up to 20,000 vehicles and fix another 60,000 fitted with the 3.0-litre diesel engine. The terms of this latest settlement - which has yet to be approved by a US judge - would mean owners who opt to have their vehicles fixed would receive between $7-$16,000 (£5547-£12,680) in compensation. A further $500 would be paid if the fixes Volkswagen proposes affect the performance of the car.

Owners who choose to have Volkswagen buy back their cars will get $7500 on top of the value of their car. Volkswagen previously agreed to buy back up to 475,000 vehicles fitted with its 2.0-litre diesel engine at a cost of up to $10.03 billion.

This settlement is seen as the last major hurdle for Volkswagen as the company looks to move beyond the dieselgate emissions scandal - although it still faces pressure from disgruntled owners for extra compensation, as well as lawsuits from some American states.

Volkswagen, which recently topped Toyota to become the world's largest car maker by sales, has been keen to show in recent months that its realignment and internal restructuring has taken effect. Its recent electric concept cars, the ID and ID Buzz, have shown Volkswagen in a new light, as the company looks to become a technology driven and eco-friendly manufacturer.

Read more - Greed, lies and deception - the Volkswagen dieselgate scandal laid bare

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Comments
21
Darren malcolm

1 February 2017
"....as the company looks to become a technology driven and eco-friendly manufacturer..."
Lets hope the technology is properly developed this time, unlike the short-cut approach exemplified by the emission devices, DSG autos, and twin-charger petrol engines of recent years.

1 February 2017
Not surprized :- "Owners who choose to have Volkswagen buy back their cars will get $7500 on top of the value of their car" If it concerned me I'd bite their hand off and get another VW, petrol this time.

 

Hydrogen cars just went POP

1 February 2017
It's becoming a case of rob Peter to pay Paul. While Volkswagen has opened its purse strings wide for the Americans, it threatens its British customers with a robust defence if they wish to claim any compensation while the spine less EU and UK authorities watch.

1 February 2017
fadyady wrote:

It's becoming a case of rob Peter to pay Paul. While Volkswagen has opened its purse strings wide for the Americans, it threatens its British customers with a robust defence if they wish to claim any compensation while the spine less EU and UK authorities watch.

You continue to look for compensation. Everyone else continues to ask what for?


1 February 2017
fadyady wrote:

It's becoming a case of rob Peter to pay Paul. While Volkswagen has opened its purse strings wide for the Americans, it threatens its British customers with a robust defence if they wish to claim any compensation while the spine less EU and UK authorities watch.

That's what EU is, a Disgrace.

No manual - no fun

1 February 2017
what exactly are people being compensated for, and how have the monetary values been arrived at?
the cars have been potentially in a cheaper tax bracket, so governments may require an easily calculable value there, but for the owner/driver, how/what is it? is it that emissions=mpg, and therefore people are compensated for the extra money they've spent on fuel? as that applies to every car - including electric ones which don't real-world the claimed range - this should be rolled out to everyone and not just vw. i accept the idea that i may have not read or missed something, but it's starting to feel like this is becoming silly.

1 February 2017
Its past silly. it's just comical now. America has done everything in their power to destroy VW and failed miserably. As times move on I think it's fair to say the world cares less about America now and what they think than at any other time in history. A lot of car makers would have gone under but the quality of the product has moved VW to #1 in the world because as the saying goes all the people cant be wrong. you can argue till your blue in the face that ford and vauxhall provide better value for money but the only problem with that is.... no one believes you!
Darren malcolm

1 February 2017
Dilly wrote:

Its past silly. it's just comical now. America has done everything in their power to destroy VW and failed miserably.

If I accept the premise that they're trying to destroy VW, erm, what makes you think they've 'failed miserably'? They've not finished yet and VW are far from safe. The amount of money they're taking off them is hardly loose change and the EU and the UK are yet to dip their beaks. This is not 'silly'; it's serious stuff and it's going to have a major effect on VW in the future. It seems that whoever occupies the World Number 1 slot gets it in the neck big style! It's a poison chalice.

1 February 2017
Dilly wrote:

Its past silly. it's just comical now. America has done everything in their power to destroy VW and failed miserably. As times move on I think it's fair to say the world cares less about America now and what they think than at any other time in history. A lot of car makers would have gone under but the quality of the product has moved VW to #1 in the world because as the saying goes all the people cant be wrong. you can argue till your blue in the face that ford and vauxhall provide better value for money but the only problem with that is.... no one believes you!

Diesel engines suck, even the modern ones in small cars, just ride behind one on a motorbike.

No manual - no fun

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