Automotive - - Feb 01,2017
German Automaker, Volkswagen AG has agreed to pay around $1.26 billion to settle or buy back approx. 80,000 polluting 3.0-liter diesel-engined vehicles.
Volkswagen could be forced to pay up to $4.04 billion if US watchdogs don’t approve fixes for all vehicles, as disclosed in the court documents filed late Tuesday.
Separately, German company Bosch (Robert Bosch GmbH), said that it will pay nearly $327.5 million in compensation to the United States car dealers and buyers of VW-made diesel vehicles affected by the ‘dieselgate’ wrongdoing.
Bosch manufactured some elements of the sophisticated software, identified as defeat device that Volkswagen installed in approx. 11 million diesel engines globally to reduce emissions during regulatory analysis.
In December 2016, Volkswagen stated that it had agreed to buy back 20,000 vehicles and projected to fix another 60,000 vehicles. According to the settlement papers, if regulators do not authorize fixes then the Germany-based automaker’s charges could jump dramatically.
Under this settlement that must be authorized by a United States judge, owners of 3.0-liter vehicles who choose for fixes will get the benefit of between $7000 and $16000 from VW if emissions repairs are permitted in a timely fashion, and VW will pay another $500 if the solution affects a vehicle’s performance. Vehicle owners who select for a buyback will receive $7500 on top of the value of the vehicle.
According to the United States Federal Trade Commission (FTC), which had sued Volkswagen and voted unanimously to back the agreement, VW could be forced to pay as much as $4.04 billion, and much more in individual vehicle owner compensation if US watchdogs discard a solution entirely.
The Chief Executive Officer of Volkswagen Group of America, Hinrich Woebcken, said with the agreement all owners of polluting diesel vehicles will have a settlement available to them. He further added that, VW will continue to work to get back the confidence of all its stakeholders.
Volkswagen AG has been banned from selling diesel vehicles in the US since late 2015.
VW AG has settled to repurchase the 2009-2012 Volkswagen and Audi 3.0-liter automobiles but believes it will be capable of fixing the 2013-2016 VW, Porsche and Audi 3.0-liter vehicles.