Volkswagen Will Pay Nearly $15 Billion in Emissions Violation Settlement

Volkswagen Will Pay Nearly $15 Billion in Emissions Violation Settlement

In two settlements, Volkswagen will be require to pay $14.7 billion to settle allegations of cheating emissions tests. $10 billion will be used to buyback affected cars and the remainder will be spent on pollution mitigation and zero-emission vehicle technology.

After reaching two settlements (one with the U.S. and the State of California, and the other with the U.S. Federal Trade Commission), Volkswagen will be required to pay $14.7 billion to buyback, terminate leases or modify the 500,000 affected vehicles, said the EPA.  

“Today’s settlement restores clean air protections that Volkswagen so blatantly violated,” said EPA Administrator Gina McCarthy. “And it secures billions of dollars in investments to make our air and our auto industry even cleaner for generations of Americans to come. This agreement shows that EPA is committed to upholding standards to protect public health, enforce the law, and to find innovative ways to protect clean air.”

“By duping the regulators, Volkswagen turned nearly half a million American drivers into unwitting accomplices in an unprecedented assault on our atmosphere,” said Deputy Attorney General Sally Q. Yates.  “This partial settlement marks a significant first step towards holding Volkswagen accountable for what was a breach of its legal duties and a breach of the public’s trust.  And while this announcement is an important step forward, let me be clear, it is by no means the last.  We will continue to follow the facts wherever they go.”

Volkswagen was using “cheat devices” in order to pass emissions tests. The affected vehicles include 2009-2015 Volkswagen TDI diesel models of Beetles, Jettas, Passats, and the TDI Audi A3.

For more information, please check out the Volkswagen Clean Air Act Partial Settlement.

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