Volkswagen hit with US$10.2 billion fine to settle emissions fraud claims
Money will go to 482,000 owners of cars with two-litre diesel engines
Volkswagen will spend about US$10.2 billion to settle an emissions cheating scandal in the United States that has turned into one of the largest cases of corporate deception in the nation’s history.
Two people briefed on settlement talks said most of the money would go to compensate 482,000 owners of cars with two-litre diesel engines that were programmed to turn on emissions controls during government lab tests and turn them off while on the road.
Investigators determined the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems. Volkswagen diesel owners first learned of the deception in September, and most have seen the value of their cars decline.
According to the two people, Volkswagen will offer to fix the cars for free but any fix will likely hurt the cars’ acceleration and fuel economy. Alternatively, the owners can sell their cars back to the company.
Volkswagen, which admitted to intentionally deceiving regulators, will also pay penalties to government agencies such as the Environmental Protection Agency, California Air Resources Board and the Federal Trade Commission, one of the people said.