25 billion euros settlement for VW
Author: Duran Sarikaya
Comprehensive Compensation Program for US Customers
In the context of the exhaust gas scandal, a court of appeal in the US ordered a billion-dollar settlement between the Volkswagen Group and the injured US customers. Thereby VW has to pay more than in the European domestic market. By now, more than 25 billion euros have accrued.
In detail, it is about a compensation program of up to $ 10 billion. VW has to pay this in particular for repurchases and repairs of about 500,000 diesel vehicles with manipulated software. Nevertheless, many plaintiffs in the class action lawsuit were not satisfied and appealed.
However, the court rejected this request because the settlement was “fair and reasonable”. In addition, the court said that the victims received higher compensation than they could expect.
In combination with the compensation package, US customers can choose to resell their vehicles to the Group, terminate their leases, or remove the manipulated software from their cars.
In the first settlement about two years ago VW agreed to a comparison of 14.7 billion dollars. With the money many class action lawsuit could be adjusted. However, the cost of VW’s emissions scandal increased significantly. So far, the group had to pay more than 25 billion euros legal costs for compensation and penalties.