Volkswagen’s $15.3 Billion Emissions Fine
CBJ — German automaker Volkswagen will pay more than US$15.3 billion to settle charges that it cheated on U.S. diesel emissions tests, an agreement that will fund buybacks for consumers and provide up to US$4.7 billion that could benefit makers of cleaner technologies.
The deal formally filed by the U.S. Justice Department will provide the largest-ever automotive buyback offer in the United States. The proposed consent decree confirmed that VW will set aside US$10.033 billion to cover buybacks or potential fixes for diesel cars and sport utility vehicles that used illegal software to defeat government emissions tests.
The settlement goes beyond compensation for consumers. Under the deal, VW will provide a total of US$2 billion to fund programs directed by the state of California and the U.S. Environmental Protection Agency to promote construction of electric vehicle charging infrastructure, development of zero-emission vehicle ride-sharing fleets and other efforts to boost sales of cars that do not burn petroleum.
VW also agreed to put up US$2.7 billion that EPA Administrator Gina McCarthy would be used by government and tribal agencies to replace old buses, or fund new infrastructure at ports to reduce diesel emissions.