24 June 2016
VW to Pay $10bn Compensation in US For Emissions Scandal
Volkswagen has agreed to pay a reported $10bn in compensation in the US over their emissions scandal.
The average compensation payment to VW car owners in the US is predicted to be around $5,000 according to AP and Bloomberg reports.
Owners of cars which had been fitted with cheat devices will be given two options:
- To let VW repair their car, keep it and receive between $1,000 and $7,000 dependant on how old their model is.
- To sell their vehicle back to the company for the value it would have fetched before the Volkswagen emissions scandal broke in September 2015.
There are nearly half a million vehicle owners who have cars fitted with ‘defeat devices’ in the US. If they were each to receive the predicted average of $5,000 in compensation this would account for $2.5bn, only a quarter of the agreed $10bn.
Some of the $10bn compensation is expected to go to the US government so that they can set up a scheme to balance out the environmental impact the pollution from diesel cars fitted with defeat devices.
The Investigations Continue
VW is currently undergoing an internal investigation into their use of defeat devices and has hired US law firm Jones Day to conduct a separate probe and report their findings to the US Department of Justice.
However, shareholders in the car manufacturing giant expressed concerns at their annual meeting over whether these investigations would be truly independent. A consulting firm which represents 14 institutional investors and shareholders in the company is currently planning to ask a German court to appoint independent experts to lead an investigation into whether the senior managers at Volkswagen failed in their duties at any point during the VW emissions scandal.
Speaking at the company’s annual meeting in Hanover this week Matthias Mueller, the new chief executive, said: “On behalf of the Volkswagen Group and everyone who works here, I apologise to you shareholders for your trust in VW being betrayed,” the Telegraph reported.
“This misconduct goes against everything that Volkswagen stands for.”
It still remains to be seen whether UK customers will receive compensation over the VW emissions scandal.
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Monday 24th July 2017