Volkswagen agrees to buyback diesel cars, emissions settlement to cost Rs. 1 lakh crore

The German automaker has agreed to spend a gigantic sum of $15 billion (around Rs. 1 lakh crore) in lieu of settling consumer lawsuits and government allegations regarding its diesel cars that were designed to cheat during the emission tests. The settlement amount for the emissions cheating scandal is believed to be the biggest amongst any other auto-related settlement claims.

The segregation of the entire sum is allowing Volkswagen to allot $10.3 billion in buybacks to the owners of around 4,75,000 diesel cars and around $5 billion, which will be used in funds to offset diesel emissions and increase the production of zero-emission vehicles.

Still, the total amount is pushing over $15 billion when we add in all the separate settlements with the US state attorney generals for excessive diesel emission which will amount to $500 million.

As of now, Volkswagen has not deciphered a solution for reducing the diesel emissions of the faulty vehicles but in any case, it will pay between $5100 to $10000 to all the owners as the compensation, apart from the buyback.

US District judge Charles Breyer needs to approve the settlement and a meeting scheduled for 26th of July will render the preliminary approval but the final approval is expected in the month of October.

The news of this settlement offers a sigh of relief for the owners as well. Owners are relieved as the plan is coming together but are still a little upset over the fact that they bought their vehicles considering them as high-performance and environment-friendly. Whereas, in reality, their vehicles’ emissions vastly exceeded the US Pollution laws.

Models covered under the settlement include 2009-2015 Audi A3 and Jetta, Golf (2010-2015) and the 2012-15 Beetle and Passat, in the 2-litre engine segment. There are 80,000 3-litre diesel engine cars waiting to be rectified and lawyers are currently working on their settlements.

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