Volkswagen Settles in Cheating Scandal to the Tune of $16 Billion

It's been less than a year since Volkswagen got caught installing software on cars to cheat emissions testing. Today the company settled out of court—paying the bulk of a $16 billion settlement to vehicle owners.

1 minute read

June 29, 2016, 11:00 AM PDT

By James Brasuell @CasualBrasuell


Volkswagen

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"Volkswagen has agreed to pay out more than $15 billion in a settlement over emission cheats built into some of its VW and Audi diesel cars," according to an article on Take Two.

"The settlement addresses civil claims from the U.S. Department of Justice, the state of California, the Federal Trade Commission and private plaintiffs," according to the article. Planetizen covered the claim by the Department of Justice when it was announced in January and when the company's malfeasance was revealed in September. Estimates in September predicted a cost of $7 billion for Volkswagen.

According to Take Two, most of the settlement will be paid to vehicle owners. "The company said in a statement it had set aside $10.033 billion to buy back affected vehicles or terminate lease agreements." The company will also spend $2.7 billion to establish a fund for environmental remediation.

"Volkswagen also agreed to a separate $603 million settlement to resolve consumer protection claims in 44 states, the District of Columbia and Puerto Rico," according to the article.

Tom Krisher and Dee-Ann Durbin also report on the settlement for the Associated Press.

Wednesday, June 29, 2016 in KPCC

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