Volkswagen Emissions-Cheating Settlement: $14.7 Billion; Buybacks For Owners

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.

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. “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.”

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

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.
• The company will also spend $4.7 billion "to mitigate the pollution from these cars and invest in green vehicle technology."

Read the full Department of Justice report here.