Car News Volkswagen

Dieselgate to cost VW USD 14.7 billion (INR 99,445 crore) in the US

 
VW dieselgate gift vouchers

The huge settlement cost in the US alone would drain a good portion of VW Group’s financial resources.

According to a person who has been briefed on VW’s dieselgate settlement deal in the US, the company has proposed a plan which would set it back by USD 14.7 billions (around INR 99,445 crore).

This deal which is set to be made public soon will involve repairing and buying back the affected diesel cars in the US (there are 475,000 of them), compensating the owners and take care of other such expenses.

VW Dieselgate impact on India

According to the proposed settlement, VW would repair or buy back the affected cars in the US.

The company is reportedly ready to compensate the owners of dieselgate cars in the US to the tune of USD 5,100 to 10,000. While the method of repairing the cars and making them compliant with existing emission norms are yet to be detailed, customers who are choosing to opt for the buy-back plan can do so by availing the pre-dieselgate trade-in value for their cars (dieselgate reduced the average trade-in value of a VW by 19% in the US).

The cost to repair or buy back the cars is estimated at USD 10 billion. The German car maker also has to spend USD 2.7 billion towards environmental mitigation and USD 2 billion towards research on zero-emission technology.

Volkswagen Dieselgate new cars affected

Dieselgate not only costs VW huge money but it also dented the prospects of new-gen VW Group cars in the US.

Also read – VW to discontinue 40 cars and replace them with EVs

It’s worth noting that the dieselgate settlement deal still requires approval from the Judge. VW Group could face more fines, penalties, and criminal charges. The affected owners can choose to forgo the settlement deal and file their own independent lawsuit against the company.

New Audi A4 – Photos

Via – TimesofIndia.Indiatimes.com

 

About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

Email - nithyanandh@rushlane.com