Months after Volkswagen agreed to a landmark $14.7 Billion Settlement for cheating emissions tests in its 2.0 liter diesel vehicles, the U.S. District Court’s have granted final approval to the settlement. As part of the agreement, Volkswagen will spend approximately $10 billion to buy back or modify vehicles in which “defeat device” software was installed. They will also pay $2.7 billion into a trust to support environmental programs and reduce emissions, along with an additional $2 billion to go toward investments and promotion of zero emissions vehicles.
Qualified owners can get compensation for their vehicles—using September 2015 NADA trade-in values—with adjustments made for mileage and option packages. The U.S. District Court has provided a guide to calculate how much owners will receive in their “Executive Summary of Proposed Class Settlement Program”. A list of eligible vehicles is also provided in the guide.
California will receive $1.18 billion as part of the funding Volkswagen must give for environmental projects and investments toward the creation of zero emission technology. The California Attorney general also announced that it secured an additional $86 million in civil penalties as part of a second partial settlement over the company’s using devices to cheat emissions. $10 million of the amount will go toward grants to local government agencies and academic institutions to research and develop technology to detect “defeat devices” and better assess on-road emissions, as well as monitor and mitigate the effects and public health impacts of vehicle emissions.
Lessees will also receive compensation and the option to have their leases terminated at no cost. Owners that opt to have repairs done will have to wait until regulators determine how the repairs will be handled. Claims must be submitted by September 1, 2018, at www.VWCourtSettlement.com.
The complete record of the court’s final approval can be found here.
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