VW to Pay Settlement Dollars

The car giant VW is set to pay between $1,000 and $7,000 and in some occasions might pay as much as $10,000. This is to owners that are affected by the diesel emissions scandal. This is according to Bloomberg and The Wall Street Journal. The report indicates that the payouts will be different in accordance to factors. For one, they would consider the age of the car and each attributes the information to unnamed sources. There has been a gag order that was issued by the US District Judge who is currently overseeing the case. The deadline for the said settlement decision would be on June 28. The decision to compensate the vehicle owners that were affected by the emissions cheating effort came way back in April. It was unclear back then just how much the individual payout would be. There was also a rumor that that it would be around $5,000 each. This is based on almost 500,000 two-liter engine vehicles that were affected. This pretty sum up for almost $3 billion. Earlier this year, Bloomberg reported that the total cost would go as high as $6.5 billion. Everything would go to the customer as payout. The customer payouts are not the only concern of VW. They are also expected to pay $3.5 billion to the US government and also regulators in California. However, money is not the only result of the scandal. The CEOs of VW and also VW USA have been replaced. Even more, the company has majorly shifted their focus and embraced electric vehicles. There is also an option to fix the affected vehicles. VW submitted the proposal last November however it was rejected by the California Air Resources Board earlier this year. The payout is only just because of the affected consumers. Simply imagine the kind of tension they are experiencing with the car. In line with this, VW needs to be able to respond and correct their mistakes. No wonder they are now shifting to electric cars in order not to experience the same problem in the near future.
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