Volkswagen to shell out $14.7 billion in USA over diesel scam

Settlement verdict for the Volkswagen dieselgate scandal in the US has been announced to the tune of $14.7 billion.

The settlement verdict for the Volkswagen dieselgate scandal has been declared in the United States that requires the German automotive major to shell out $14.7 billion dollars to mitigate the damages caused by its over polluting diesel cars that were fitted with a ‘defeat device’ programmed to emit 35 times less NOx emissions when tested in a lab as the software detected steering and pedal movements to understand that it is being tested under standard conditions.

The $14.7 billion dollar settlement comes in two parts – one from the Unites States and the State of California and the other from the U.S. Federal Trade Commission. Of the total amount, $10.03 billion has been set aside to compensate car owners affected by the scam. This amount will cover buy back of around 500,000 diesel cars under the VW group that have been fitted with the defeat device. Owners of cars who opt to get their vehicles fixed by VW will also be financially compensated with anywhere between $5,100 and $10,000.

The remaining $4.7 billion in fines will be paid by Volkswagen to the Environmental Protection Agency (EPA). Of this, $2.7 billion will be used to fund endeavours to reduce nitrogen oxide emissions around the United States of America while the remaining $ 2.0 billion will be used as investment in infrastructure to support zero emissions vehicles.

Globally, Volkswagen is looking to revamp is image by announcing launch of around 30 electric models by the year 2025 while attempting to make cleaner cars immediately.

Also read: Volkswagen to use particle filters for petrol engines from 2017