Volkswagen will pay $14.7 billion in settlements with consumers and federal regulators following findings of cheating in the emissions software installed in its automobiles.
According to court documents, the car maker will pay $10 billion to owners of affected vehicles, $2.7 billion to an environmental remediation fund, and will spend $2 billion to promote zero emission vehicle technology.
Volkswagen reached the civil settlement with the Justice Department, Environmental Protection Agency, Federal Trade Commission, California regulators, and consumer plaintiffs’ representatives.
In another agreement, it will pay out $ 603 million with 44 US states, the District of Columbia, and Puerto Rico to resolve consumer protection issues.
The deals comprise the largest settlement seen in the history of the US auto industry.
Volkswagen chief executive Matthias Muller acknowledged that earning back the trust of its clients would be an uphill climb, but that the car maker was “focused” on building a “better company”.
The automaker set aside $18 billion to deal with the backlash that ensued after software cheating on its diesel engine cars over emissions tests was revealed.
The scandal also opened a can of worms for the US auto industry as consumers have filed similar cases against other car manufacturers. Several companies are under investigation and authorities are expected to release information as soon as it becomes available.
