Settlement could exceed $10 billion.

The Dieselgate scandal is coming to a close in the United States as Bloomberg is reporting Volkswagen is close to reaching a settlement with government and regulatory officials.

The deal is expected to be presented to a judge next week and will reportedly see owners of models affected by the scandal receiving a payment of between $1,000 and $7,000 - depending on the car's age and "other factors."  The average payment is expected to be about $5,000 and owners could potentially have the option to sell their vehicle back to Volkswagen.

The settlement is also rumored to include an environmental remediation program.  Little is known about the program but Volkswagen isn't expected to be able to repair all the models affected by the scandal so the company might have to buyback those vehicles or make extra payments to an environmental fund.

Sources familiar with the matter have suggested the settlement could exceed $10 billion.  However, it is expected to include an assortment of penalties for violating the Clean Air Act.

In related news, Volkswagen has announced plans to drop the Jetta Hybrid in the United States.  The company says the move is designed to simplify the Jetta lineup for 2017.  However, it is worth noting the model had a base price of $31,120 and accounted for less than 1 percent of Jetta sales in the United States last year.

Source: Volkswagen, Bloomberg, and Automotive News

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