Volkswagen agrees $15bn emission cheating payout in the US

The fallout continues for the German company...

Volkswagen agrees $15bn emission cheating payout in the US

Picture by: Mike Egerton / PA Archive/Press Association Images

Volkswagen has agreed to pay out more than $15bn as it deals with the fallout of its rigging on emission tests for some diesel models.

It will set aside $10bn to cover costs including vehicle buy-backs at pre-scandal values and compensation for drivers of up to $10,000 per car.

The German manufacturers will also pay $2.7bn in fines to the US Environmental Protection Agency and the California Air Resources Board - it will also invest $2bn in clean-emission technology according to Bloomberg.

The financial publication also reports that the car manufacturer will be required to pay $400m in fines in other US states.

The company fitted 11 million cars with devices to fool emission tests - its legal battles span three continents and the company faces civil and criminal actions in a number of jurisdictions.

Emission standards are particularly strict in the US - the cost of the company cleaning up the mess left by its cheating will be less severe in other territories.

Ireland

In March Volkswagen Ireland moved to reassure the owners of vehicles affected by the company’s emission-cheating scandal that the value of their cars will not be affected.

The company will carry out repairs on some 115,000 Volkswagen, Audi, Skoda and SEAT vehicles in Ireland during the second and third quarters of this year.

In letters to the owners of these cars the company also indicated that the refitting will have "no impact" on road tax or NCT tests.