Volkswagen Settlement Includes US and Canada

by Admin on June 29, 2016

United States Federal regulators came down unprecedentedly hard on Volkswagen this past Tuesday with $15.3 billion (USD) fine against the German automaker in wake of last year’s diesel emissions scandal. VW will pay out $14.7 billion to consumers and federal agencies. In addition, the automaker also will pay $600 million (USD) to settle with 44 states, Puerto Rico, and the District of Columbia.

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Over $10 billion of the settlement will go to compensate the 482,000 consumers in the US who own Volkswagens with the 2-litre diesel engines that were programmed to activate emissions controls during lab tests and turn them off while driving. The US Environmental Protection Agency has characterized this as monumental and historic settlement for violating public health laws.

Volkswagen is also subject to the pending criminal investigation into the 2015 scandal which impacted roughly 11 million total vehicles across the globe. Civil penalties assessed under the Clean Air Act are also pending while US federal regulators negotiate a separate settlement between Volkswagen and owners of models with 3-litre diesel engines which are also impacted. The deal is also being viewed as an unprecedented win for consumers versus automakers, who became unknowing culprits in the illegal emissions control scheme.

In Canada, owners of VW models implicated in Volkswagen’s emissions scandal will be included in the US settlement for appropriate compensation and will be able to either sell their Volkswagen back to the automaker or opt to have the emissions issue fixed.

Cameron Wallace
Account Manager

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