NEW DELHI: Volkswagen has received approval from a U.S. federal judge in San Francisco on Tuesday for a $14.7 billion court settlement for claims against the automaker related to its emissions-cheating scandal.
According to agencies, US District Judge Charles Breyer signed the settlement order for has been the largest automobile scandal in history. The settlement order, while only for claims from the U.S. also indicates how the automaker might need to deal with the issue in other markets.
The automaker had admitted last year 475,000 of its cars under the VW and Audi brands with 2-liter four-cylinder diesel engines had been programmed to cheat on emissions tests. More than 11 million vehicles across the world were recalled by the company post the scandal, including 3.24 lakh cars in India.
Under the Tuesday’s settlement, owners of the affected cars have until September 1, 2018, to decide whether to have the car fixed or repurchased. Agency reports say that Volkswagen could start buying back the cars as early as next month if owners submit claims.
“The settlement is fair, reasonable and adequate,” Breyer wrote in his order. In addition to having cars bought back, owners can each get cash payments of $5,100 to $10,000 each according to the settlement order.
Volkswagen will also pay the attorney fees and costs, including up to $324 million in fees and $8.5 million in out-of-pocket costs. The settlement releases legal claims from most 2-liter VW owners in the U.S., but it doesn’t affect larger 3-liter six-cylinder diesels, which also cheated on tests.
The settlement also doesn’t end any claims against parts supplier Robert Bosch, which drew up the cheating software.
Judge Breyer gave preliminary approval to the settlement in July. The order says that 336,612 owners of 2-liter diesels have registered for the settlement and 3,298 have opted out. VW must make payments available within 10 business days from Tuesday, according to the order.
Volkswagen has received approval from a U.S. federal judge in San Francisco on Tuesday for a $14.7 billion court settlement for claims against the automaker related to its emissions-cheating scandal.
According to agencies, US District Judge Charles Breyer signed the settlement order for has been the largest automobile scandal in history. The settlement order, while only for claims from the U.S. also indicates how the automaker might need to deal with the issue in other markets.
The automaker had admitted last year 475,000 of its cars under the VW and Audi brands with 2-liter four-cylinder diesel engines had been programmed to cheat on emissions tests. More than 11 million vehicles across the world were recalled by the company post the scandal, including 3.24 lakh cars in India.
Under the Tuesday’s settlement, owners of the affected cars have until September 1, 2018, to decide whether to have the car fixed or repurchased. Agency reports say that Volkswagen could start buying back the cars as early as next month if owners submit claims.
“The settlement is fair, reasonable and adequate,” Breyer wrote in his order. In addition to having cars bought back, owners can each get cash payments of $5,100 to $10,000 each according to the settlement order.
Volkswagen will also pay the attorney fees and costs, including up to $324 million in fees and $8.5 million in out-of-pocket costs. The settlement releases legal claims from most 2-liter VW owners in the U.S., but it doesn’t affect larger 3-liter six-cylinder diesels, which also cheated on tests.
The settlement also doesn’t end any claims against parts supplier Robert Bosch, which drew up the cheating software.
Judge Breyer gave preliminary approval to the settlement in July. The order says that 336,612 owners of 2-liter diesels have registered for the settlement and 3,298 have opted out. VW must make payments available within 10 business days from Tuesday, according to the order.