Judge approves 3.0-litre settlement in VW emissions case
12 May 2017
12 May 2017
A US judge has granted final approval on an agreement to for Volkswagen (VW) to pay at least $1.2 billion (€1.1 billion) to fix or buy back around 80,000 3.0-litre vehicles linked to the German company’s emission scandal.
Following preliminary approval in February 2017, San Francisco District Judge Charles Breyer also said he was granting approval to German supplier Bosch in a separate settlement, which will see it pay $325 million (€300 million) to US VW diesel owners for its part in development of the engine. Breyer stated that he would be overruling all objections and called the settlements, in which Bosch admitted to no wrongdoing, as fair, reasonable and adequate.
The news means that owners of 3.0-litre diesel-engine VWs who opt for fixes rather than having their cars bought back, will receive between $7,000 and $16,000 (€6,500 and €14,500) as long as these are approved. If not, the company could be forced to pay over $4 billion (€3.6 billion) buying back vehicles.
Volkswagen spokeswoman Jeannine Ginivan comments: ′[The settlement] marks an important milestone for Volkswagen and means that a resolution is available to all of our customers with eligible diesels.’
In total, VW has now agreed to spend up to $25 billion (€23 billion) in the United States to address claims from owners, environmental regulators, US states and dealers and to make buy-back offers. The settlement agreement puts in place approval for every affected VW diesel engine car in the US.
Meanwhile, VW’s US business has appointed KPMG director Stephanie C. Davis as its chief compliance officer.
VW Group of America CEO″¯Hinrich Woebcken said in a statement: ′Stephanie has a proven record of furthering compliance-related goals through pragmatic solutions that achieve measurable results. Her knowledge of US automotive and environmental regulation and her experience as an accomplished compliance and ethics professional make her a valued addition to our leadership team.’