Auto owners may also choose to keep their vehicle and wait to see if VW and Audi develop acceptable emissions fixes; auto owners who exercise this option will also receive a cash payment of at least $5,100, Schneiderman said.
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Volkswagen AG [corporate website] has agreed to spend up to $14.7 billion to settle [consent decree, PDF] allegations of cheating emissions tests and deceiving customers in a settlement with U.S. regulators announced Tuesday.
The largest chunk of the payout, up to $10.03 billion, will go to to owners of the affected VW and Audi 2-liter diesel engine cars.
The scandal erupted in September when it was learned that the German automaker had fitted many of its cars with software to fool emissions tests and had put dirty vehicles on the road.
Both the State of Alaska and consumers will receive money from Volkswagen after the company’s cars were revealed to have software created to beat emissions tests.
VW is also barred from making deceptive claims in the future, according to a settlement with the U.S. Federal Trade Commission.
Attorney General Derek Schmidt said in a statement people who brought Volkswagen 2.0-liter diesel vehicles between the 2009 and 2015 model years are included in the settlement.
Volkswagen will also pay millions in civil penalties, including $3,471,600 to Kentucky. The company got away with the scheme for seven years until independent researchers discovered the scheme and reported VW to the Environmental Protection Agency.
The amount spent by Volkswagen for the settlement can reduce if its fix for the 2.0-litre TDI engines gets approval and owners agree to get their cars fixed.
“While I believe Volkswagen’s conduct was blatant, I do believe they are living up to that promise to try to make things right to their consumers, with our Kentuckians, and they are taking responsibility”, Beshear said.
Michaels does not expect the settlement to be reduced by Judge Breyer as it was agreed upon by the class, Volkswagen, the DOJ and FTC, he said.
The record settlement raises questions about whether VW will need to devote more than the €16.2bn it has set aside to cover the cost of repairs, fines and legal fees.
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Volkswagen is required to fix the cars that it buys back or to scrap them.
