28 companies urge the U.S. Justice Department to oversee VW $2 billion settlement

The $2 billion dollar is seen as a “game changer” by electric vehicle charging companies thus they wants its usage overseen by an independent regulator.

As part of the penalties imposed on Volkswagen wherein it will have to spend $2 billion in clean car infrastructure, electric vehicle charging companies are calling for an independent oversight on how VW spends the money saying it should not have the power to shape the burgeoning electric car charging market.

According to the terms and conditions of its settlements in the U.S, Volkswagen had agreed to invest $1.2 billion nationally and $800 million in California for setting up clean car infrastructure.

Although car charging station companies view the amount to be invested as a potential “game changer,” they have now woken up to the fact that it could be used to give VW a competitive edge.

“The agreement shouldn’t pick winners and losers, especially given that this emerging market transition will in no small part define 21st century transportation,” reads a letter from 28 companies, including EV Connect, ChargePoint, and Electric Vehicle Charging Association addressed to the U.S. Justice Department on Friday.

According to the letter, an independent administrator is required to ensure that the program treats all players favourably irrespective of business mode and technology used.

VW did not immediately respond to a request for comment.

“The program should be structured to benefit drivers in California and across the nation, not enable the settling defendants to enter or influence the markets for (zero emission vehicle) charging and fueling equipment and services,” reads the letter.

It further stated that regulators should earmark a portion of the fund for a rebate program which could act as an incentive for facility managers, apartment owners, employers and workplaces so as to urge them to install EV charging stations.

Incidentally, charging stations at multi-unit apartments and workplaces are seen as key hurdles for the widespread adoption of EVs.

According to the terms of its settlements with the U.S EPA and the California Air Resource Board, VW’s yet to be released $2 billion, will be overseen by the above mentioned agencies.

Categories: Creativity, Economy & Finance, Entrepreneurship, Geopolitics, HR & Organization, Regulations & Legal, Strategy


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