VW set to pay $10 billion

Volkswagen has brokered a deal, in principle, with the US Government to settle diesel violations. Around 482,000 2-liter diesel VW and Audi vehicles were designed with software built to mask excess emissions in testing. Many of the details are still vague, but it’s estimated VW will spend just over US$10bn on government claims and owner compensation. A San Francisco federal judge announced that the car-making giant had agreed to a broadly outlined plan, which involves compensation for customers, lease cancellation, a buy-back scheme or perhaps vehicle modification. The decision has stopped any possible criminal trial, with Volkswagen delivering the following statement: “Volkswagen is committed to earning back the trust of its customers, dealers, regulators and the American public. These agreements in principle are an important step on the road to making things right. As noted today in court, customers in the United States do not need to take any action at this time.” A fund for corrective efforts over excess pollution is also included. It was back in September that the company admitted intentionally defeating emissions tests and putting dirty vehicles on the road. The company has been given until June 21 to file the specifics of the proposal, overseeing the consolidation of more than 500 federal lawsuits filed against VW. However despite this latest announcement, issues of criminal liability are ongoing, as is an investigation by the Department of Justice.