Emission Scandal: Volkswagen Agrees to Pay $1.2bn in SettlementBusiness, Featured, Latest News Wednesday, February 1st, 2017
BALTIMORE, MD (AFRICAN EXAMINER) – Foremost automobile giant Volkswagen has agreed to pay minimum of $1.2bn (£1bn) to fix or buy back 78,000 diesel cars in the US to settle more emissions – cheating claims.
Without regulatory approval, the German car giant could be forced to buy back all of the cars, with about $4bn.
The deal which is another long-running emissions scandal still requires approval from the courts.
Car components company Robert Bosch, a VW supplier, has also agreed to pay $327.5m to US owners of affected cars.
The proposed settlements for the three-litre cars are the last major US hurdle for VW over its emissions scandal.
VW previously agreed to spend $10bn to compensate the owners of about 482,000 two-litre vehicles after it admitted it had installed secret software to disguise emissions.
The Federal Trade Commission (FCT) said Wednesday that US customers who bought the three-litre diesel cars would be fully compensated “through a combination of repairs, additional monetary compensation, and buybacks for certain models”.
Owners of 2009 to 2012 models could get between $26,000 and $58,000 for a buyback, depending on the model, mileage, and trim of the car, the FTC said.
FTC added that for owners and people leasing between 2013 and 2016 models, the organization is expected to get regulatory approval for a fix that makes the cars compliant with US environmental regulations.
However, if VW fails to get Environmental Protection Agency and the California Air Resources Board approval for the modification within a certain time frame, it must offer to buy back those vehicles, a situation that will increase the amount it must pay to about $4bn. BBC.
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