Volkswagen, the German automobile manufacturer, is paying out massive amounts in compensation as part of the Dieselgate emissions scandal of 2015. The scandal revealed that the company had fitted some 11 million diesel vehicles worldwide with illicit software, allowing them to emit levels of pollutants up to 40 times the legal limit.
In the United States, where the scandal had the biggest impact, Volkswagen set up a $14.7 billion fund to compensate owners of the affected vehicles. Some $10 billion of this was set aside to buy back or repair vehicles, while the remaining $4.7 billion was to be spent on environmental remediation.
Volkswagen also paid out more than $1 billion in civil penalties to the U.S. government, as well as over $1 billion to 44 U.S. states and territories. This money was to be used to fund environmental remediation projects and other initiatives that benefit the public.
The company spent an additional $2.7 billion to compensate Canadian owners of affected vehicles, and approximately $4.8 billion to compensate owners in Europe. It also paid out around $36 million to South Korean owners. In total, Volkswagen has so far paid out an estimated $25 billion in compensation and fines related to the Dieselgate scandal.
On top of this, Volkswagen also faces numerous other class-action lawsuits related to the scandal, as well as countless consumer lawsuits and government investigations into other aspects of the company’s practices. The total cost of these additional legal proceedings is expected to be in the billions.
How Much Is Volkswagen Paying Out In Diesel Emissions Scandal?
In 2015, the world was rocked when it was discovered that Volkswagen had been installing software in its diesel engines which was designed to cheat emissions tests. The scandal cost the company billions in fines and settlements and the company has now agreed to pay out over $33 billion in compensation to affected customers and governments.
Volkswagen’s settlement with the U.S. Department of Justice included a $14.7 billion civil penalty to resolve the criminal case. This includes a total of $2.7 billion in civil penalties and more than $1 billion in criminal fines. The company will also pay an additional $1.2 billion to the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB).
In addition to these payments, Volkswagen has agreed to spend up to $10 billion to buy back affected vehicles, repair and modify them, or provide owners with a cash payment. Volkswagen will also pay $5 billion to states to address environmental impacts from the scandal. The settlements also include a $2.0 billion investment to promote zero-emissions technologies.
In total, Volkswagen has agreed to pay more than $33 billion in fines, settlements, and other damages related to the diesel emissions scandal. The company has already paid out more than $17 billion and will continue to pay out the remaining funds over the next several years.
The diesel emissions scandal has been a major blow to Volkswagen’s reputation. However, the company is committed to working with governments, customers, and other stakeholders to ensure that the company is held accountable for its actions and that affected customers are compensated for their losses.
| Payment | Amount |
|---|---|
| Civil Penalty | $14.7 billion |
| EPA/CARB | $1.2 billion |
| Buybacks/Repairs/Payments | $10 billion |
| Environmental Impacts | $5 billion |
| Zero Emission Technologies | $2 billion |
| Total | $33 billion |
The diesel emissions scandal has been a major setback for Volkswagen but the company is committed to making amends. The company is paying out more than $33 billion in damages and compensation and is working to make sure that affected customers are fully compensated for their losses.
The Cost Of Volkswagen’s Diesel Emissions Scandal: Breaking Down The Numbers
Volkswagen’s diesel emissions scandal shook the world in 2015, when it was revealed that the company had used software to cheat on U.S. emissions tests. Volkswagen has since paid nearly $32 billion in fines, settlements, and other related costs. Here is a breakdown of how much Volkswagen has paid out.
The fines have been the largest financial penalty for a car manufacturer in history. Volkswagen was fined $14.7 billion by the U.S. government for selling vehicles with software that was designed to cheat emissions tests. This included a fine of $2.8 billion for violating the Clean Air Act, and a $1 billion civil penalty to settle claims brought by 44 states and the District of Columbia.
Volkswagen also agreed to a $10.033 billion settlement with owners of the affected vehicles. Under the settlement, Volkswagen agreed to buy back or modify the affected vehicles, and to pay owners up to $10,000 in compensation. The settlement also included an additional $4.7 billion to address environmental remediation and infrastructure improvements.
In addition, Volkswagen has paid out more than $4.3 billion in legal fees and other related costs, bringing its total payout to nearly $32 billion. Volkswagen has also agreed to spend up to $25 billion in the U.S. to address the environmental impacts of its diesel emissions scandal.
| Type of Payment | Amount (in billions) |
|---|---|
| U.S. government fines | $14.7 |
| Settlement with vehicle owners | $10.03 |
| Legal fees and other costs | $4.3 |
| Environmental remediation | $25.0 |
| Total | $31.9 |
In total, Volkswagen has paid out nearly $32 billion in fines, settlements, and related costs for its diesel emissions scandal. This amount includes a $14.7 billion fine from the U.S. government, a $10.03 billion settlement with vehicle owners, $4.3 billion in legal fees and other costs, and up to $25 billion for environmental remediation and infrastructure improvements.
Volkswagen has agreed to pay up to $14.7 billion to settle claims related to their emissions scandal.
The settlement covers claims for environmental remediation, vehicle buybacks, and compensation for affected consumers.
Owners and lessees of affected Volkswagen, Audi, and Porsche vehicles can apply for compensation.
Yes, any payments received from the settlement may be taxable.
The settlement payments will begin as early as Spring 2018.
You can submit an online claim form on the website www.vwcourtsettlement.com.
You will need to submit proof of ownership or lease of the affected vehicle.
You can find more information about the settlement on the website www.vwcourtsettlement.com.
The settlement applies to Volkswagen, Audi, and Porsche vehicles with 2.0-liter diesel engines.
You must file a claim by September 1, 2018 to be eligible for compensation.
