Volkswagen plans for emission settlements

The Dollar Business Bureau

Volkswagen has planned to buy back or repair the polluting vehicles and pay the owners around $10,000 under the $14.7 billion deal, as the company plans to settle the lawsuits that stemmed due to its emission cheating scandals.

Volkswagen has retained $10 billion to either buy back or repair around 475,000 polluting vehicles with a 2-liter diesel engine. The automobile major also looks to compensate the owners with an additional payment between $5,100 and $10,000.

The car owners who would opt for buybacks would get a clean trade in value for their cars.

Just before the scandal, the average value of the VW diesel dropped by 19%. The average value of VW diesel in August 2015 was $13,196. This May the value was $10,674.

The scandal appeared in September, when it came to light that Volkswagen had installed software in its vehicles to fool emission tests.

The settlement includes $2.7 billion for environment mitigation and another $2 billion for research on zero emission technology.

The company had escaped routine testing of EPA for seven years. However, the International Council on Clean Transportation caught the company’s scam last year.

However the 90,000 units of 3-liter VW diesel, which have different cheating software, are not included in this settlement.