Missouri has recently filed a lawsuit against Volkswagen. The German automaker was found to have cheated on its diesel emissions. 16 other US states had already sued Volkswagen for the same reason. Now, a US District Judge in San Francisco has approved Volkswagen's $14.7 billion settlement with California regulators and consumers.
Volkswagen's $14.7 Billion Settlement
The Wall Street Journal reports that the $10.03 billion of the $14.7 billion settlement is for the consumers. Volkswagen will also offer an additional $5,100 to $10,000 cash payments for each person. The automaker had admitted that is has installed "defeat devices" in its diesel-powered cars. This will cause an unsafe amount of emissions.
The German automaker has to fix or buy back 85 percent of the 475,000 affected vehicles by June 2019. Otherwise, Volkswagen will have to face additional costs. According to The Wall Street Journal, around 340,000 owners have taken part in the settlement. The said owners have to submit paperwork until Sept. 2018 to sell back vehicles.
The approval of US District Judge Charles Beyer is welcomed by Volkswagen. The Chief Executive of its North American operations Hinrich Woebcken has said that it's an important milestone to make things right with the US. He reiterated that the company is committed to implementing the program for consumers.
Indeed, the affected US consumers are pleased that the settlement has been approved. Lead lawyer Elizabeth Cabraser mentioned that it has made Volkswagen accountable for its illegal behavior.
More importantly, the automaker has to face the consequences of breaking consumer trust. It may take some time before Volkswagen is able to earn back their consumers' trust.
The Cost Of Volkswagen's Emission Cheating Scandal
According to Reuters, Volkswagen will have to pay billions more to cover 85,000 affected 3.0-liter vehicles and the Justice Department fines. The automaker has clearly violated clean air laws. Not to mention the other lawsuits filed against Volkswagen by at least 16 other US states.
It was also reported that a Volkswagen engineer had pleaded guilty in Detroit last month. The said engineer had helped the company to evade US emission standards. Reuters added that his lawyer revealed his client will cooperate with federal authorities.