An American judge approved the $14.7 billion fine that Volkswagen will pay to U.S. owners after the pollution scandal, reports BBC.
After the agreement, the German carmaker agreed to pay up $10 billion as compensations for owners. The remaining amount of $4.7 billion will go into special programs, meant to reduce the gas emissions and other green cars projects.
The cars of the owners involved in the scandal are going to be redeemed at the same price they had before the scandal or they will be repaired if the inspection bodies shall approve the changes.
In addition, the owners will receive financial compensation between $5,000 and $10,000, depending on the age of the vehicle.
Volkswagen installed a software on diesel cars, that modified the results of the gas emissions tests.
The German recalled 11 million cars. The scandal affected their business, the firm’s reputation and led to the resignation of the Executive Director, Martin Winterkorn.
‘The settlement we’ve negotiated is so generous, that it doesn’t make any financial sense not to participate, when you see how big the numbers are’, stated said the director of the FTC’s enforcement division James Kohm.
‘You’d have to not care about money’, insisted Kohm.
Volkswagen’s agreements with car owners and the U.S. must be approved by U.S. District Judge Charles Breyer, who is overseeing more than 800 lawsuits over the rigged vehicles that were consolidated in San Francisco. Breyer is scheduled on July 26 to consider approving the agreements, writes Bloomberg.