High cost for VW

Volkswagen’s cost to settle lawsuits in US over emissions-cheating has risen to $21.4 billion - up $7 billion from previous estimates. The settlement will see $14.3 billion given to car owners, covering both the value of their vehicles before the emissions scandal broke as well as compensation, which could be as much as $14,000 per owner. Compensation figures have risen over the last few days, as the parties involved changed their estimates on what it would take to get around 85 per cent of owners of rigged cars to trade in their vehicles. On top of this compensation, Volkswagen will pay $3.86 billion in fines to the US Environmental Protection Agency and the California Air Resources Board, with an additional $2.86b spent on clean-emissions technology. Volkswagen is also expected to announce a settlement with several states, including New Yok, totalling around $571 million. The total forecast of $21.4 billion brings Volkswagen closer to the $26.1 billion the German automaker has set aside to cover the costs of the scandal. The settlement is the largest automotive buyback in US history and the number could rise if Volkswagen misses certain repair deadlines. The automaker has yet to reach an agreement with regulators on whether it will offer to buy back 85,000 three-litre Porsche, Audi and Volkswagen vehicles which have emitted up to nine times the legally allowed pollution. A deal covering the three-litre models may still be months away and Volkswagen has yet to see how much it may face in civil fines for violating the Clean Air Act. The settlement also doesn’t address lawsuits filed by investors or possible penalties from a criminal investigation by the US Justice Department.