Volkswagen Emissions-Cheating Settlement Will Give CA $1.2 Billion

Volkswagen will spend as much as $14.7 billion to settle claims that it installed "defeat devices" on nearly 500,000 diesel vehicles that would reduce emissions only when the cars were being tested, according to a Department of Justice press release.

The automaker faced lawsuits from the state of California and the U.S. Federal Trade Commission over the devices, and a settlement was officially announced Tuesday.

The state of California will receive about $1.2 billion of that money, California officials said, which will go toward environmental projects.

"It brings billions of dollars in consumer relief and billions of dollars going forward" to cut down on air pollution, she said.

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Tuesday's settlement covers 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, Golfs and Beetles as well as the TDI Audi A3.

Harris said that 71,000 Californians bought the affected cars.

Volkswagen still faces similar claims related to diesel vehicles with three-liter engines. It also could face criminal penalties for the devices.

“By duping the regulators, Volkswagen turned nearly half a million American drivers into unwitting accomplices in an unprecedented assault on our environment,” U.S. Deputy Attorney General Sally Q. Yates said in a press release.

Here's what the settlement includes, according to the Department of Justice:

• Anyone who bought the affected cars can get a full buyback and lease termination from Volkswagen, which could cost the company as much as $10.03 billion, or a a free fix to the emissions devices.
• The company will also spend $4.7 billion "to mitigate the pollution from these cars and invest in green vehicle technology," including $1.18 that will go to California.

Related

• EPA: Volkswagen Intentionally Violated Emissions Rules
• Huge Volkswagen Scandal Just Got Even Bigger
• Suit Targets VW Over Cars Designed to Cheat Smog Tests
• Volkswagen Cheated on Larger Engines, Too
• EPA: VW Emissions Cheat Scandal Deepens
• U.S. Sues Volkswagen for Emissions Cheating

Read the full Department of Justice report here.

City News Services contributed to this report.