Volkswagen was trapped in a massive diesel emissions scandal months back when the company was caught tricking the emission tests. The automobile maker was using devices and software patches to deceive the officials which led to higher-than-legal levels of pollutant emission. In this regard, the company was charged $14.7 billion as compensation.
Further, the automobile maker was asked to shell out monetary compensation, between $5,100 and $10,000 to all current and former car owners. The amount was bifurcated as $10 billion for buybacks and repairs, $2.7 billion to US Environmental Protection Agency fund over next three years and the remaining $2 billion for zero emissions vehicle (ZEV) infrastructure over the next ten years.
But these compensations still not covers all the matter. Volkswagen may have to disburse an additional amount of about $200 million into EPA fund (Environmental Protection Agency) towards 80,000 3-liter diesel vehicle emissions. The previous $2.7 billion are only sufficient for about 475,000 2.0-liter diesel vehicles that broke the emission limits.
The additional money would be utilized in replacing and scraping or to retrofit older vehicles with new models equipped with better exhaust cleaning technology. For example, school buses 10 years old or older may get the money to buy new models.
Volkswagen has been asked to present their final agreement resolving the matter for 3.0-liter vehicles by 19th December (i.e today). It is, however, predicted that the company may buy back 20,000 of the 3- liter diesel cars and fix the issue for 60,000 of them. While the 3-liter models broke the limit by only nine times, the 2-liter vehicles did it by 40 times.
Apart from this, Volkswagen has agreed to pay $16.7 billion concerning U.S. diesel emission cheating allegations. Further fines for the VW may emerge in order to dismiss the ongoing criminal investigation and a civil suit alleging civil violations of the Clean Air Act. Currently, the sale of diesel vehicles has been prohibited for the company in the U.S. since the matter came to light with no dates for resuming the sale. It is yet to witness how the German company resolves the whole matter.