Volkswagen To Pay Over $10 Billion To US Owners To Cover Cheating Scandal

Volkswagen AG will pay more than $10 billion to settle claims by nearly 500,000 owners stemming from its U.S. diesel emissions cheating scandal and fund efforts to offset pollution, three sources briefed on the agreement said on Thursday.

Speaking on condition of anonymity, due to court-imposed gag rules, a source said that owners will receive an average of $5,000 in compensation along with the estimated value of the vehicles as of September 2015, before the scandal erupted. Owners would also receive the compensation if they choose to have the vehicles repaired, assuming U.S. regulators approve a fix at a later date.

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MDarringer - 6/24/2016 10:05:51 AM

0 Boost

Pennies on the dollar...not a real penalty...for a company the size of VW this is change rattling around in the drink holder.

HenryN - 6/24/2016 10:46:58 AM

+1 Boost

Ouch! $10B for 500K cars in US alone. I read somewhere that VAG put aside $22B to handle the emission scandal (not sure of the exact number) and it appears not enough is left to cover the remaining 10.5M diesel cars out there. Maybe it's cheaper to bribe the government officials or declare bankruptcy than to settle.

I wonder what this scandal costs other manufacturers ? They should also sue VAG for getting them into this mess.

rockreid - 6/24/2016 11:35:51 AM

+2 Boost

...and through all this STILL not one VW CEO or Executive has even been arrested, let alone convicted and put in prison for what is the largest Felony Fraud criminal case In human history. But hey, I guess to do so would be against the "Free Market" so we better not hurt business and its infallible leaders.

TheSteve - 6/24/2016 11:42:40 AM

+1 Boost

Just as a data point, affected US and Canadian owners got a preliminary compensation package (combination of some of the following: $500 Audi card, cash, 2 free routine maintenance, 2 years roadside assistance). It appears the rest of the world got nothing. Now there's talk of yet for US-only (possibly Canada) compensation.

I can't help but wonder how affected owners in the rest of the world feel about this, especially considering most of VW's business is outside of North America.

MDarringer - 6/24/2016 4:17:42 PM

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And yet, there are people who will defend VW to the death. VWAG is probably the most unethical car maker on the planet.

USNA1999 - 6/24/2016 6:32:40 PM

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Well, I still love our TOUAREG (V8 not diesel), its been a great car. Lots of unethical car companies out there MDarringer, they just haven't been caught yet.

TomM - 6/24/2016 7:52:35 PM

+2 Boost

One must remember that there are still other entities who are suing VW - including several states - that are not included in this settlement

BUT giving the value of the car before the problem was announced - PLUS $5000 is quite a bit MORE than pennies on the dollar.

MDarringer - 6/26/2016 12:30:47 PM

-1 Boost

Yes VW is as pure as the driven snow.

800over - 6/27/2016 9:40:45 AM

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hey Bob, unless you have VW stock why lose your mind when MD says VW is pure? Your posts are the straw man revival. You call others douchbags and lose your mind over "smug comment"? You're obviously no scientist either...just an internet jockey like the rest of us (unless they hire scientists who have trouble with spellling and sentence structure). And yes we know you condone VW. Now lose your sh!t silently please and let the big boys play.