The compensation amount of $10.3 billion does not include environmental costs, which could further boost the total cost of the diesel emission scandal.
According to 3 sources who are knowledgeable with the matter at hand since they have been briefed about the agreement, Volkswagen AG is set to pay more than $10 billion in order to settle claims by around 500,000 owners of its vehicles.
A source, speaking on the condition of anonymity since the matter is subjudice, revealed that owners are likely to get $5,000 in compensation along with the estimated value of their vehicles as of September 2015. Significantly, even if owners opt to get their vehicles repaired, they would still receive the compensation. All of this is subject to U.S. regulators approving VW’s fix, which is due at a later date.
As part of the deal, VW will not only introduce a program which offsets the excess pollution from the offending vehicles but also help boost the development of zero emission vehicles.
As per a source, according to documents which outlines the provisions of the complex settlements, the total value of the settlement is $10.3 billion.
However, as per another source, this figure does not include environmental costs, so the overall settlement amount is set to increase even further. The source has however not quantified the overall increase.
Both, the U.S. EPA and Volkswagen have declined comment on this report.
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