Expect a settlement in the Volkswagen emissions fiasco tomorrow
It could cost VW $15 billion, Reuters reports.
A federal judge has given Volkswagen until Tuesday, June 28th, to present a plan aimed at making amends in the diesel emissions scandal that's been dogging the company for nearly a year. Reuters and Bloomberg report that the settlement will cost VW $15 billion. In September, regulators discovered VW was using emissions-concealing software in roughly 500,000 of its diesel vehicles sold since 2008.
Last week, the AP claimed VW would settle the scandal for $10.2 billion, and the new reports build on that figure. According to Reuters and Bloomberg, VW will pay just over $10 billion to buy back vehicles using "defeat devices" that hide their true emissions production. Owners of affected VW vehicles could receive up to $10,000 apiece, Bloomberg says -- that's double the $5,000 figure originally reported in April.
Plus, VW will spend $2 billion on clean-emissions technology, and pay $2.7 billion in fines to the Environmental Protection Agency and the California Air Resources Board, Bloomberg says. VW will also settle with individual states for another $400 million, the site says.
In April, VW estimated the fiasco would cost $18.2 billion to resolve. The company saw an operating loss of $4.61 billion in all of 2015.
