U.S. consumers received $9.8 billion in Volkswagen diesel settlements
Reuters
Published Jul 27, 2020 02:37PM ET
Updated Jul 27, 2020 09:40PM ET
By David Shepardson
WASHINGTON (Reuters) - U.S. buyers of polluting Volkswagen AG (DE:VOWG_p) vehicles received more than $9.8 billion in settlements, the Federal Trade Commission (FTC) said on Monday .
Volkswagen agreed to offer to buy back or repair more than 550,000 polluting diesel U.S. vehicles after it admitted in 2015 that it used secret software to cheat emissions tests.
The FTC in its final report on the settlements said more than 86% of consumers completing claims chose to return their car through a buyback or early lease termination rather than get a repair.
Volkswagen paid more than $9.5 billion to U.S. consumers, while VW diesel supplier Robert Bosch (ROBG.UL) paid more than $300 million to U.S. consumers.
Most of the vehicles covered were 2.0-liter diesel vehicles. VW agreed to offer owners and people who leased the 475,000 2.0-liter vehicles between $5,100 and $10,000 in compensation, in addition to the estimated value of the vehicle.
The scandal triggered a global backlash against diesel vehicles that so far has cost VW 30 billion euros ($33.3 billion) in fines, penalties, vehicle buyback costs and other settlements.
VW in 2017 pleaded guilty to fraud, obstruction of justice and falsifying statements as part of a $4.3 billion settlement reached with the U.S. Justice Department.
Last month, a U.S. appeals court ruled VW cannot escape potential financial penalties stemming from lawsuits filed by two counties that may amount to a "staggering" additional liability. Volkswagen vowed to seek further review by the 9th Circuit or the U.S. Supreme Court if necessary, saying the ruling conflicts with the findings of other courts.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.