Volkswagen has proposed a plan which would settle claims stemming from its diesel emissions cheating scandal by USD 14.7 billion, in a way it would be one of the largest consumer class-action settlements ever in the United States. The settlement involves owners of about 475,000 Volkswagen vehicles includes a maximum of $10.03 billion to buy back affected cars at their pre-scandal values along with additional cash compensation for the owners, according to a person who briefed on the settlement’s terms.
Reportedly, the company will compensation to each car owner in a range of $5,100 to $10,000 and will also compensate previous owners who may have sold their diesel vehicles after the cheating scandal came in to light last year, but at only half the rate of the compensation being offered to current car owners. The buyback price and amount of the additional compensation will depend on the cars’ value before its public admission last September.
This settlement would cover only a small number of the 11 million diesel cars worldwide, most of them in Europe, that the company has learnt contains the cheating software. while the cost to repair or buy back the cars is estimated to be around USD 10 billion. The German marque also has to spend USD 2.7 billion towards environmental compensatory mitigation and USD 2 billion towards research on zero-emission technology.