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Business

Volkswagen faces $15 billion payout in U.S.

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Business

Volkswagen faces $15 billion payout in U.S.

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COMING UP:Volkswagen faces $15 billion payout in U.S.

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Transcript

00:00:02
>> $15 billion, that's how much Volkswagen's US settlement is going to cost them. The company admitted last year it had tricked regulators, installing secret software in diesel cars that allowed them to emit pollution up to 40 times the legal limit. Now a source tells Reuters they'll be setting aside $10 billion to buy back the affected cars and compensate the owners.
00:00:24
Experts following the settlement say VW had little negotiating power given the evidence. It will be the largest buy back offer in US history, affecting nearly half a million two liter diesel cars. And the most expensive auto industry scandal ever. Besides the buy backs, the settlement requires VW to spend about $5 billion to offset emissions and boost zero emission cars.
00:00:47
A separate settlement with US State Attorneys General is expected to be over 500 million and VW faces a string of other costs from civil penalties to investor lawsuits and a criminal investigation. Plus a settlement over 85,000 larger polluting cars that's still months away.