Report: Volkswagen to Pay U.S. Owners Up To $7,000
Settlement May Also Include Funding of Environmental Initiative
As Volkswagen is pledging to fast-track EV development and doing a top-to-bottom review of the company’s assets and brands, comes news of progress on the owner settlement front. According to a Bloomberg report, Volkswagen may pay U.S. owners of its TDI models up to $7,000 and fund a grant program to mitigate the effects of diesel pollution. The information was given on condition of anonymity, since presiding U.S. District Judge Charles Breyer has imposed an official gag order on proceedings.
According to the report, VW is believed to be unable to fully repair all the models to the satisfaction of the U.S. Environmental Protection Agency (EPA), so will make additional payments to the environmental fund. Payments to the individual vehicle owners would be between $1,000 and $7,000, depending on vehicle age and other factors. The proposed environmental fund is modeled on the Diesel Emissions Reduction Act or DERA, which funded retrofit programs to install emissions control equipment on older trucks and provide incentives for companies to repower older trucks with newer, less polluting engines. Total cost of the settlement in the U.S. is expected to cost in the order of $10 billion. An estimated 482,000 vehicles in the U.S. are affected. VW has sold millions more TDIs in other markets and could be subject to other judgments in those countries as well.