VW to pay $14.7B to clean up emissions scandal
VW\'s dirty diesel scandal will cost the company $14.7 billion.
Volkswagen will payout $14.7 billion to clean up an emissions scandal stemming from the company's 2.0L four-cylinder diesel engine. The settlement is the highest penalty ever paid by an automaker in the United States.
According to the terms of the settlement, VW will dole out between $5,100 and $10,000 to the 475,000 owners of vehicle included in the emissions scandal. Additionally, VW will foot the bill to either buy back those vehicles or equip them with software that brings them back into emissions compliance. VW must buy back or fix 85 percent of the vehicles covered by July 2019. The total tab for restitution will be $10 billion.
The German auto giant will pay another $2.7 billion in fines and $2 billion to spur the development of clean-emissions technology. However, the final tally is likely to be much higher; VW is facing suits from individual states and the company still hasn't reached an agreement over its 3.0L diesel engine.
"We're getting polluting vehicles off the road," EPA Administrator Gina McCarthy said, according to the Detroit Free Press. "We're holding VW accountable for this illegal pollution."
The amount of money given to owners will vary based on factors like vehicle age and mileage. No exact date has been given for the start of the program, but it should commence relatively soon.