Confirming the reports last week of a settlement of the VW emissions lawsuit, the parties today announced that VW will pay $14.7 billion to settle allegations of cheating emissions tests and deceiving customers. Volkswagen will offer consumers a buyback and lease termination for nearly 500,000 model year 2009-2015 2.0 liter diesel vehicles sold or leased in the U.S., and spend up to $10.03 billion to compensate consumers under the program. In addition, the companies will spend $4.7 billion to mitigate the pollution from these cars and invest in green vehicle technology.
The settlement includes claims brought by the United States, the State of California, the Federal Trade Commission, and private plaintiffs. The FTC's press release, with a detailed description of the settlement and a link to it, is here. The U.S. Department of Justice's press release is here.
Volkswagen also announced that it has agreed with the attorneys general of 44 U.S. states, the District of Columbia, and Puerto Rico to resolve existing and potential state consumer protection claims related to the diesel matter for a total settlement amount of approximately $603 million. VW's press release is here.
Volkswagen has set up a settlement website with an explanation of the settlement and pertinent documents, here.
The New York Times reports that "VW’s U.S. Diesel Settlement Clears Just One Financial Hurdle," here.
And Bloomberg reports, here, that the settlement includes billions of dollars to support technologies sold by rivals such as Tesla Motors Inc. and Toyota Motor Corp.