Currently reading: VW emissions scandal: $14.7bn settlement approved as biggest in US history
Volkswagen will buy back or fix 475,000 cars in the US, and all owners are set to get compensation of up to $10,000
Autocar
News
2 mins read
25 October 2016

Volkswagen has been given approval for its $14.7 billion (around £11bn) settlement with owners of cars in the US affected by the emissions scandal.

The settlement money, which is the largest sum in US history, will be used to compensate some 475,000 drivers. Owners can choose between getting the software fix or selling their car back to VW. They will also get additional compensation payments of between $5100 to $10,000, regardless of which choice they make.

The final approval follows comments from US District Judge Charles Breyer last week that indicated he planned to approve the deal.

No change for Europe

Volkswagen continues to draw criticism from political figures as it stands by its decision to not offer compensation to European customers, despite the mounting pressure to do so.

Spokesmen from Volkswagen have claimed that compensation is not necessary in the UK and the rest of Europe because the fix is less extensive and customers will, therefore, have their cars back soon after they have been recalled.

A further $2bn (around £1.5bn) will be put into the development of zero-emissions vehicles, such as hydrogen fuel cell cars and electric vehicles, while $2.7bn (around £2bn) will be put into environmental mitigation.

In the UK, it was recently revealed that Volkswagen offered to cover the cost of government retesting of vehicle emissions. However, the offer was only extended to Volkswagen Group vehicles, rather than all of the cars tested from various manufacturers, which reportedly cost a total of £2m. 

The results of the retesting scheme revealed that only Volkswagen Group products used the so-called ‘defeat devices’, the discovery of which sparked the emissions scandal.

VW also reached a "partial settlement" with 44 US states last month for a total of $603m.

In a further move, the states of Maryland, New York and Massachusetts are all filing lawsuits against the manufacturer, accusing it of violating state environmental laws and defrauding regulators, according to ReutersThese lawsuits would be in addition to the $14.7bn compensation package.

Jimi Beckwith and Doug Revolta

Advertisement

Read our review

Car review

Just how good is the mighty Volkswagen Golf? The seventh generation of Europe's best selling car has been facelifted to keep its nose ahead of its rivals

Join the debate

Comments
18
Add a comment…
sierra 27 October 2016

€5,000 compensation in Spain - maybe!

Can't link to article in Spanish press, but a court there has just awarded a motorist €5000 compensation for emissions problems with his car. VW appealing, of course
pauld101 26 October 2016

Europe....

I have absolute faith that our European lords and masters will negotiate a similar deal for all owners of every affected VW marque vehicle in all member states. At least, that's what Elvis told me yesterday.
fadyady 26 October 2016

pauld101 wrote:

pauld101 wrote:

I have absolute faith that our European lords and masters will negotiate a similar deal for all owners of every affected VW marque vehicle in all member states. At least, that's what Elvis told me yesterday.

You may be surprised that some of our European lords and masters - including those who drafted loosely worded legislation that Volkswagen is now hiding behind - have strong Volkswagen connections. So I won't get my hopes high on Elvis' words alone. lol

fadyady 25 October 2016

Record settlement

It is a huge sum of money by any means. But then Volkswagen earned it. The fraud they pulled and are getting away with in Europe is also of unthinkable magnitude. Lucky Americans will bag up to $10000 each. European victims of Volkswagen fraud will be lucky to get a fraction of that princely amount.
Winston Churchill 26 October 2016

fadyady wrote:

fadyady wrote:

It is a huge sum of money by any means. But then Volkswagen earned it. The fraud they pulled and are getting away with in Europe is also of unthinkable magnitude. Lucky Americans will bag up to $10000 each. European victims of Volkswagen fraud will be lucky to get a fraction of that princely amount.

YAWN

fadyady 26 October 2016

Winston Churchill wrote:

Winston Churchill wrote:
fadyady wrote:

It is a huge sum of money by any means. But then Volkswagen earned it. The fraud they pulled and are getting away with in Europe is also of unthinkable magnitude. Lucky Americans will bag up to $10000 each. European victims of Volkswagen fraud will be lucky to get a fraction of that princely amount.

YAWN

Don't worry. Next time I will write something with crayons to stop you yawning.