Detroit: Volkswagen will spend more than $15 billion to settle consumer lawsuits and government allegations that it cheated on emissions tests in what lawyers are calling the largest auto-related class-action settlement in US history.
Under the settlement revealed by a US District Court in San Francisco yesterday, VW will pay just over $10 billion to either buy back or repair about 475,000 vehicles with cheating 2-liter diesel engines.
The company will also compensate owners with payments of $5,100 to $10,000, depending on the age of their vehicles.
Although the company has been working on a repair for the vehicles for months, it appears that VW may not be able to fix the cars and will have to buy them all back, according to the documents.
The German automaker also has to pay governments $2.7 billion for environmental mitigation and spend another $2 billion for research on zero-emissions vehicles.
VW also settled with 44 states, Washington, DC and Puerto Rico, which also sued the company, agreeing to pay about $603 million. That brings the total settlements to $15.3 billion.
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