Dieselgate: Volkswagen Likely To Pay $200 Million For 3.0-Litre Vehicles

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Volkswagen has been subject to scrutiny across the globe since the news of its emissions scandal broke in 2015. The scandal affected the group’s vehicles with its 2.0- and 3.0-litre diesel engines. Earlier this year in June, the German carmaker reached a settlement with US authorities which saw it agree to buy back 475,000 units of vehicles with the 2.0-litre engines and offer compensation of $5,100 to $10,000 per owner, at a total cost of $10.03 billion. Now Reuters reports that VW has further agreed to pay over $200 million to compensate for emissions from nearly 80,000 3.0-litre diesel vehicles in the US.

While VW AG’s 2.0-litre vehicles had software that allowed the vehicles to evade emissions rules in testing and emit up to 40 times the legally allowable emissions in on-road driving, the vehicles with 3.0-litre engines have an undeclared auxiliary emissions system that allowed them to emit up to nine times allowable limits.

It was reported last month that Volkswagen had reached an agreement with regulators in the US concerning 80,000 affected Audi, Porsche and VW 3.0-litre vehicles. A separate, more comprehensive framework is likely to be offered for the older vehicles.

The latest agreement in the scandal, in addition to $2.7 billion that VW previously agreed to pay in regard to the 2.0-litre diesel vehicles, is yet to reach a final resolution in the US. It is reported the primary concern amid the negotiations is how much compensation will the affected owners receive for repair or selling them back.
While the owners of affected cars in the US will be compensated, the company has continually dismissed any proposals of a similar settlement in Europe. While there has been no official confirmation in reference to the resolution of the issue in the continent, VW reportedly intends to fix the vehicles but will not offer any cash to the owners.

The German group was dealt another blow from South Korea – the country’s authorities slapped a fine of a record 37.3 billion won (25.2 million pounds) for false advertising on vehicle emissions.

Now with the $200 million for the 3.0-litre vehicles, Volkswagen’s total expenditure in the resolution of the scandal in just the US alone has gone up to $16.7 billion. Other than that, the company will most likely also pay billions in fines as part of a separate potential settlement with the US Justice Department to resolve an ongoing criminal investigation and a civil suit alleging civil violations of the Clean Air Act.

© Thomson Reuters 2016