A total of $14.7B will have to be paid by the Volkswagen in regards to the 2.0-liter TDI settlement.
After nearly five months on trial following Volkswagen’s ‘Dieselgate’ scandal, the German automaker has officially obtained final approval by the courts to put the 2.0-liter TDI settlement into effect. Judge Charles R. Breyer of the United States District Court for the Northern District of California, has granted the approval to the private plaintiffs represented by a court-appointed Plaintiffs’ Steering Committee (PSC).
The claim, which affected nearly 500,000 Volkswagen- and Audi-branded TDI diesel vehicles sold to American buyers (of which just 340,000 owners took part in the suit), reached approval today with a record-setting $14.7B settlement, the largest civil settlement ever reached with an automaker.
The company will begin buying back vehicles as early as mid-November, with 900 new employees hired to handle the buybacks specifically. Volkswagen will spend $10.33B of the $14.7B on buybacks alone, and another $4.7B on programs to offset the excess emissions and development of zero-emissions vehicles.
In total, the company has already agreed to spend over $16.5B in connection with the scandal, including $1.21B in payments to 652 U.S. Volkswagen-branded dealers, and $600M to 44 U.S. states to address other claims.
Judge Breyer, who presided over the case, said that the agreement, “adequately and fairly compensates” owners affected by the scandal, and that “given the risks of prolonged litigation, the immediate settlement of this matter is far preferable.”
The settlement, though, does not include the nearly 85,000 3.0-liter V6 diesel vehicles sold in the U.S., to which Volkswagen will have to pay a hefty fine to the U.S. Justice Department for fines violating clear air laws, and lawsuits from at least 16 U.S. states for additional claims.