U.S. files Volkswagen settlement, details buybacks

http://www.reuters.com/article/us-volkswagen-emissions-settlement-idUSKCN0ZD2S5

German automaker Volkswagen AG (VOWG_p.DE) has agreed to pay more than $15.3 billion in a settlement with U.S. regulators over pollution caused by its diesel vehicles, according to a source briefed on the matter.The settlement stems from VW's admission in September that it intentionally misled regulators by installing secret software that allowed U.S. vehicles to emit up to 40 times legally allowable pollution.

It covers 475,000 2.0-liter vehicles. The Justice Department filed a proposed consent decree that confirms VW will set aside $10.033 billion to cover buybacks and fixes, $2 billion to invest in green energy funds and $2.7 billion to offset diesel emissions.Shares of VW were up 4.6 percent at 111 euros.A source briefed on the matter said VW would announce a separate settlement with at least 44 U.S. states, the District of Columbia and Puerto Rico that will cost at least $600 million.

The actual amount VW will spend on buybacks could be significantly less if regulators approve fixes and owners opt to get vehicles repaired. Most owners will get at least $5,100 in compensation in addition to the pre-scandal value of the cars and up to $10,000, documents filed on Tuesday said.Volkswagen expects to begin buying back vehicles in October, when a U.S. judge is expected to give final approval to the settlement and is to start proposing fixes in November. Some vehicles will require significant mechanical fixes.
 

Last edited by Common Sense (6/28/2016 9:05 am)