$14.7 Billion Buyback Deal of Volkswagens Emissions Scandal Approved by Court

Industry - Pavan Pandey - Nov 15,2016

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14 billion buyback deal of volkswagen emissions scandal approved by court

In the United States, finally some good news for the owners of almost half-million Volkswagen diesel cars who have been trapped in Volkswagen’s emissions scandal. On Tuesday, a District Court Judge of San Francisco, United State gave an ultimate final approval to an agreement for largest consumer settlements in US history. To compensate consumers for its emission-cheating scandal, the German carmaker Volkswagen will have to pay up to $15 billion in massive settlements. This emission cheating scandal was disclosed in September 2015 by the Environmental Protection Agency (EPA). 

This is the decision on emission test on Volkswagen vehicles with 2.0-liter diesel engines produced far more pollutants when driven on the road. US District Magistrate Charles Breyer said that the recompense should be paid to the owners of cars. These polluting diesel engines were equipped with software that enabled the vehicles to pass emissions tests in a fraudulent manner.

After this settlement, the carmaker company Volkswagen confessed that it equipped 11 million cars internationally with software designed to escape the criteria of emission standards. World’s largest automaker company Volkswagen is still facing illegal investigations by the US Justice Department and also with the German prosecuting attorney. VW Company has to pay $2.7 billion for environmental mitigation and $2 billion for clean-emissions infrastructure.

While presenting these vehicles, VW Company claimed that it's a fuel-efficient diesel car and it will help reduce greenhouse gas emissions. Under the agreement approved by US Judge, Volkswagen Corporation will pay the full market price for the cars and the actual market price will be determined based on the car model and the number of miles car holders have driven their cars.