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