Volkswagen to Pay Over $10 Billion to Settle Emissions Claims

Volkswagen AG is near to a $10 billion civil settlement, the biggest in the auto industry’s history, to compensate U.S. owners of automobiles affected by the German automobile maker’s emissions-cheating scandal.

Under the proposed offer, Volkswagen would offer to buy back automobiles and offer extra payment for owners of almost 500,000 diesel-powered cars with two-liter engines that consist of software efficient in fooling government emissions tests.

Along with that, Volkswagen is expected to pay over $4 billion for environmental impacts and to promote so-called zero-emission automobiles. Volkswagen faces other government penalties in the U.S. and around the world.

Volkswagen is offering to either purchase back vehicles at their market value before the scandal emerged in September or make affected cars certified with ecological policies. The vehicle maker will likewise offer additional cash whether owners opt to offer or keep their automobiles.

Customers could receive at least $5,100 and some could get up to $10,000, beyond the price of the buyback or repair. Cars affected are the model year 2009 to 2015 Volkswagen Jettas, 2010 to 2015 Volkswagen Golfs, 2012 to 2015 Volkswagen Passats and Beetles, and Audi A3s between 2010 to 2015, all having diesel engines.