Volkswagen AG has given consent to paying a minimum of $1.26 billion towards fixing or buying back around 80,000 vehicles powered by the 3.0-litre diesel engine which emit more NOx than the legally permissible limit. However, the carmaker could end up paying around $4.04 billion if the regulators don't approve the fixes for all vehicles. A Reuters report states that the settlement is yet to be approved by a U.S. judge.
As per the settlement, owners of VW vehicles with 3.0-litre diesel engines affected by the emissions scandal will receive a compensation amount ranging from $7-16,000. The carmaker will have to shell out another $500 is their solution affects the vehicle's performance. In comparison, those opting for a buyback will get paid the value of the vehicle and a compensation of $7,500.
If the regulators reject the solutions offered by Volkswagen entirely, then the carmaker could end up paying three times the settlement amount. Also, individual owner compensation will cost the company more. Earlier Volkswagen had agreed to buying back their 3.0-litre diesel vehicles manufactured between 2009 and 2012. But it says that the 2013 to 2016 models with 3.0-litre diesel engines can be fixed.
Automobile component manufacturer Robert BoschGmbH has agreed to pay $327.5 million as compensation. The owners of vehicles affected by the Volkswagen emissions scandal had sued Bosch in 2015 for being an active participant.
Overall, Volkswagen has agreed to spend around $25 billion to settle various claims from vehicle owners, regulators, dealers and different U.S. states.