Volkswagen and USA government officials have agreed on a $5,000 per person payout for each customer that was affected by the Dieselgate scandal, Die Welt reports.
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A fix for those cars was required to be ready by April 21, the CNBC story said.
Both the U.S. Environmental Protection Agency and the California Air Resources Board have rejected previous VW plans to modify the Volkswagen diesels so that they return accurate emissions readings.
Volkswagen is expected to tell a federal judge in San Francisco on Thursday that it has agreed to offer to buy back as many as 500 000 two-litre diesel vehicles sold in the United States that exceeded legally allowable emission levels.
It’s unclear how much of the $10 billion will be paid out to auto owners as compensation or used to buy back or fix vehicles, said the person with knowledge of the settlement.
So it looks like there’s at least some progress being made, which is good for VW, as they just need to plow through and get this all over with and behind them. The cases have lingered since last fall with the polluting cars still on the road, leaving owners to wonder if VW will buy them back or come up with a fix that will hurt their performance and fuel mileage. Consumers who purchased or leased one of the affected diesel vehicles did not receive a car with the promised characteristics-rather than getting a “clean”, powerful, fuel-efficient car, Arizona consumers received a powerful, fuel-efficient car that emitted vastly more nitrogen oxide pollutants into the air than allowed.
Reuters reports that anonymous sources familiar with the matter said the company intends to “substantially” increase the $7.6 billion it has now set aside to cover costs related to the scandal. The buyback offer will not apply to the bigger, 80,000 3.0-litre diesel vehicles, which also exceed pollution limits, including Audi and Porsche SUV models, the sources said. It also includes a request to add the Federal Trade Commission to the case.
In September of a year ago, Volkswagen admitted to foul play with its rigging of emissions data, through the use of a defeat device installed in more than 11 million diesel cars.
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Investors on Wednesday welcomed the attempt by Volkswagen to avoid a mass court action, and VW shares rose 6.61 percent on the Frankfurt market.
