Photo: Florin Profir
On September 18, 2015, the automotive world took one of its hardest blows when the EPA accused Volkswagen of equipping its diesel vehicles with an emissions cheating device. On June 28, 2016, this wild rollercoaster ride has come to an end. Still, many more fines are in the pipeline for Volkswagen AG.
A little over nine months since everything came crashing down for the biggest automaker in the world, the German manufacturer announces that is reached settlement agreements with federal regulators in the United States, 44 U.S. states, and private plaintiffs. Volkswagen has agreed to pay $2.7 billion for an environmental remediation fund, whereas $2 billion are to be invested in a handful of initiatives that promote the use of zero-emissions vehicles in the U.S.
Other than those $4.7 billion, Volkswagen will put aside $10.033 billion for the 2.0L settlement program. This pool has been created for the owners of 460,000 VW and 15,000 Audi 2.0-liter TDI-engined vehicles that are in use and eligible for buybacks and lease terminations or emissions modifications. Affected owners will have plenty of time to decide how they want to profit from this mess. More specifically, until May 2018.
“We take our commitment to make things right very seriously and believe these agreements are a significant step forward,” explains Matthias Muller, the chief executive officer of VW AG and successor of Martin Winterkorn. “We appreciate the constructive engagement of all the parties, and are very grateful to our customers for their continued patience as the settlement approval process moves ahead. We know that we still have a great deal of work to do to earn back the trust of the American people. We are focused on resolving the outstanding issues and building a better company that can shape the future of integrated, sustainable mobility for our customers.”
Despite the fact Volkswagen will spend a total of $14.7 billion to make things right in the United States of America, this is not the actual end of Dieselgate. As simply put as possible, this settlement doesn’t address potential criminal liability and additional civil penalties levied by other states. Oh, and another thing:
"Volkswagen continues to work to resolve outstanding legal matters in the United States. These include civil claims by the DOJ, FTC and private plaintiffs represented by the PSC related to 3.0L TDI vehicles and various other putative class action claims, civil penalties sought by the EPA and potential state environmental claims, and any criminal investigations by the DOJ." In other words, VW AG continues to prepare for worst case scenarios.
Other than those $4.7 billion, Volkswagen will put aside $10.033 billion for the 2.0L settlement program. This pool has been created for the owners of 460,000 VW and 15,000 Audi 2.0-liter TDI-engined vehicles that are in use and eligible for buybacks and lease terminations or emissions modifications. Affected owners will have plenty of time to decide how they want to profit from this mess. More specifically, until May 2018.
“We take our commitment to make things right very seriously and believe these agreements are a significant step forward,” explains Matthias Muller, the chief executive officer of VW AG and successor of Martin Winterkorn. “We appreciate the constructive engagement of all the parties, and are very grateful to our customers for their continued patience as the settlement approval process moves ahead. We know that we still have a great deal of work to do to earn back the trust of the American people. We are focused on resolving the outstanding issues and building a better company that can shape the future of integrated, sustainable mobility for our customers.”
Despite the fact Volkswagen will spend a total of $14.7 billion to make things right in the United States of America, this is not the actual end of Dieselgate. As simply put as possible, this settlement doesn’t address potential criminal liability and additional civil penalties levied by other states. Oh, and another thing:
"Volkswagen continues to work to resolve outstanding legal matters in the United States. These include civil claims by the DOJ, FTC and private plaintiffs represented by the PSC related to 3.0L TDI vehicles and various other putative class action claims, civil penalties sought by the EPA and potential state environmental claims, and any criminal investigations by the DOJ." In other words, VW AG continues to prepare for worst case scenarios.
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