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Business

VW to pay $10.3B for emissions scandal

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Opening sequence

Business

VW to pay $10.3B for emissions scandal

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COMING UP:VW to pay $10.3B for emissions scandal

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Transcript

00:00:01
>> Sources tell Reuters, Volkswagen is ready to pay up. The German car manufacturer will fork over more than $10 billion to settle claims by nearly half a million owners, stemming from its US diesel emissions cheating scandal. It also will fund efforts to offset pollution. Reuters reporter David Shepherdson.
00:00:19
>> The largest chunk of the money will be to offer these nearly 500,000 owners a buyback, which is really unprecedented in the auto industry, something of this size. As well as, an additional compensation beyond the value of the vehicles before the scandal erupted of around $5,000 per vehicle.
00:00:40
So the premiums alone, the compensation, that's about $2.5 billion. And then the second part of that settle for owners will be if at a later date, the Environmental Protection Agency in California agree that the fix that Volkswagen is proposing works, then owners will be able to get that compensation and get the vehicle fixed rather than buying it back, but that decision is going to be several months from now.
00:01:07
>> In September, VW disclosed that it used sophisticated software to evade emissions requirements in nearly 11 million vehicles worldwide. It also mislead the EPA which started asking questions in 2014. As part of the settlement, Volkswagen will help boost zero emissions vehicles and introduce a program to offset excess diesel pollution from the offending vehicles.