Having admitted to allegations stemming from the diesel emission scandal, Europe’s biggest car maker is making rapid strides to leave it behind. Here is the order of U.S. District Judge Charles Breyer against the company’s 3.0 litre diesel-scandal-emission-linked models.
U.S. District Judge Charles Breyer has granted final approval for Volkswagen AG to pay a minimum of $1.22 billion in order to either buyback or fix 80,000 3.0-liter vehicles in the United States that have been linked to its diesel emissions cheating scandal.
As part of that settlement, District Judge Charles Breyer has also approved German auto supplier Robert Bosch GmbH to pay $327.5 million to the U.S owners of VW’s diesel vehicles for its role in developing the engines.
Overruling all objections, Breyer called the settlements, in which Bosch admitted to no wrongdoing, “fair, reasonable and adequate.”
In fall 2016, Breyer had approved a separate settlement for Volkswagen AG which called for a fine of upto $14.7 billion and required it to buy back 475,000 of its 2.0-liter vehicles which emitted upto forty times their legal allowable emissions limits.
As per this judgement, owners of 3.0 liter vehicles will now get compensation in the range of $7,000 to $16,000 from Volkswagen if emissions remedies are approved in a timely fashion.
If regulators do not approve of its fixes for all of its 3.0 litre vehicles, Volkswagen may have to shell out a total of $4.04 billion.
As per Volkswagen’s spokeswoman Jeannine Ginivan, the settlement “marks an important milestone for Volkswagen and means that a resolution is available to all of our customers” whose diesel models are eligible for this order.
Volkswagen has now agreed to spend up to $25 billion in the United States to address claims from environmental regulators, U.S. states and dealers, for its buy-back offers and from its vehicle owners.
Volkswagen’s U.S. unit has now named Stephanie C Davis, a director at KPMG LLP, as its chief compliance officer.