The terms of the settlement are preliminary, pending final approval from U.S. District Judge Charles Breyer
Stephen Breyer
Stephen Gerald Breyer is an Associate Justice of the Supreme Court of the United States. A lawyer by occupation, he became a professor and jurist before President Bill Clinton appointed him to the Supreme Court in 1994; Breyer is generally associated with its more liberal side.
Full Answer
What is the VW settlement?
Volkswagen Settlement. In two related settlements, German automaker Volkswagen AG (VW) has agreed to spend up to $14.73 billion to settle allegations of cheating emissions tests and deceiving customers. The automaker will spend up to $10.03 billion to compensate consumers under the program and will spend $4.7 billion to mitigate...
How many settlements did the EPA have against Volkswagen?
(Washington, D.C.) - Through a series of three partial settlements, the EPA has resolved a civil enforcement case against Volkswagen AG, Audi AG, Dr. Ing. h.c. F. Porsche AG, Volkswagen Group of America, Inc., Volkswagen Group of America Chattanooga Operations, LLC, and Porsche Cars North America, Inc. (collectively “Volkswagen”).
How much did Volkswagen pay to settle the emissions tests?
In two related settlements, German automaker Volkswagen AG (VW) has agreed to spend up to $14.73 billion to settle allegations of cheating emissions tests and deceiving customers.
What is the Volkswagen environmental mitigation trust in Virginia?
DEQ administers over $93 million in the Volkswagen Environmental Mitigation Trust to reduce air pollution in Virginia. The Trust is the result of settlements resolving allegations that Volkswagen violated the Clean Air Act through the use of emission testing defeat devices designed to cheat on federal emissions tests.
What was the third partial settlement of Volkswagen?
When did the second partial settlement of Volkswagen be approved?
How much did Volkswagen contribute to the CAA 3.0 settlement?
What is the CAA 2.0 liter recall?
How much did Volkswagen pay for the 2.0 liter recall?
How many diesels were sold in 2016?
When will the 3.0 liters be recalled?
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About this website
What were the consequences of the Volkswagen scandal?
Damage to shareholders: It's impossible to calculate precisely, but in the scandal's first two months the company lost 46% of its value, or $42.5 billion. Today Germany's DAX index is about where it was in September 2015, and the S&P 500 is up 68%, but VW stock is still 35% below its pre-scandal price.
Are VW paying compensation?
More than 90,000 people will receive a share of £193million following a court settlement related to the VW emissions scandal. The Volkswagen Group will pay out a share of £193million to around 91,000 drivers in England and Wales following a high-profile lawsuit relating to the 'Dieselgate' scandal.
How did the Volkswagen scandal affect the economy?
We estimate an economically significant reputational spillover from the scandal, amounting to an average drop of $2,057 in consumer valuations of the non-VW German manufacturers' vehicles and a 34.6% reduction in those manufacturers' annual U.S. unit sales.
How much was the Volkswagen settlement?
WASHINGTON, Jan 21 (Reuters) - Volkswagen AG (VOWG_p.DE) agreed to a $3.5 million settlement with Ohio over claims the German automaker violated state laws by manipulating vehicle computer software in its vehicles to mask carbon dioxide emissions, the state attorney general said.
How much will I get from the VW emissions scandal?
The Volkswagen Group has reached an out of court settlement with claimants in a class action lawsuit following the dieselgate emissions scandal. A payout of £193 million has been agreed, which averages £2,120 for each of the 91,000 owners that joined the claim.
How long does my diesel claim take?
If you submit a Diesel Emissions Claim you should be able to get a response from the car manufacturer within 4 weeks of your claim going through. In most cases, car manufacturers will not want to go to court and will try and settle the claim quickly outside of court.
What is the ethical problem in Volkswagen case?
The ethical dilemma that Volkswagen experienced was necessitated by claims that the automobile maker had cheated on the air pollution tests subjected by the United States. The company had intended to sell diesel cars in the United States.
How did Volkswagen recover from scandal?
When the affected Volkswagen vehicles were tested, the software kicked in and the company was able to record lower emission levels and, as a result, receive substantial green car subsidies and tax exemptions in the USA. Similar tax breaks and subsidies were also affected in Canada and Europe (Atiyeh, 2017).
Why did VW lie about emissions?
Knowing that the diesel vehicles would evade U.S. emissions standards, Volkswagen misrepresented them for years in order to get EPA and CARB certifications that allowed the vehicles to be sold in the U.S. When EPA and CARB finally began to catch on, Volkswagen equivocated until regulators threatened to withhold ...
What years of VW diesel cars are affected?
Affected vehicles2.0 liter diesel vehicle models and model years with defeat devices: Jetta (2009 – 2015) Jetta Sportwagen (2009 - 2014) Beetle (2013 – 2015) ... 3.0 liter diesel vehicle models and model years with defeat devices: Volkswagen Touareg (2009 - 2016) Porsche Cayenne (2013 - 2016) Audi A6 Quattro (2014 - 2016)
What did Volkswagen do with all the recalled cars?
What happened to those recalled VW diesels? Volkswagen was forced to buy back the affected cars and fix their emissions-cheating software and parts. The cars can now be sold again, often at absolutely killer prices.
How much money did Volkswagen lose in a recent settlement for violating the Clean Air Act?
Under the third partial settlement, Volkswagen has paid a $1.45 billion civil penalty for the alleged civil violations of the Clean Air Act.
How much will VW pay for buyback?
VW owners who had their vehicles when the scandal erupted in September 2015 have two options. They are generally eligible for a vehicle buyback ranging in value from $12,500 to $44,000. Or they can get their car fixed to make it legal and receive a payout ranging from about $5,000 to $10,000.
What was Volkswagens punishment?
In April 2017, a US federal judge ordered Volkswagen to pay a $2.8 billion criminal fine for "rigging diesel-powered vehicles to cheat on government emissions tests". The "unprecedented" plea deal formalized the punishment which Volkswagen had agreed to.
How does VW buy back work?
Volkswagen owners and lessees who are eligible can either bring their VW in for compliance modification, allow us to buy back their vehicle or end their lease early. In some cases, an additional cash settlement can be offered. Numbers vary, but eligible drivers can receive as much as $10,000 from Volkswagen.
How much did VW pay for Dieselgate?
193 million poundsLONDON, May 25 (Reuters) - Volkswagen (VOWG_p.DE) will pay 193 million pounds ($242 million) as part of an out-of-court settlement to around 91,000 British drivers over a diesel emissions scandal that engulfed Europe's largest carmaker in 2015.
Volkswagen agrees to $14.7 billion settlement over emissions cheating
Volkswagen's deliberate cheating on emissions tests will cost it a record $14.7 billion. And that's just the start of its problems. The settlement is only a preliminary step in the case; the ...
Volkswagen (VW) Settlement: DERA Option | US EPA
States. The States, Puerto Rico, and the District of Columbia may obtain funds as Mitigation Trust Beneficiaries upon application to the Trustee to implement NOx reduction projects as defined in Appendix D-2, including the DERA Option under the DERA State Grant Program.The documents below distinguish between Eligible Mitigation Actions (EMAs) 1-9 and projects eligible under the DERA Option ...
Volkswagen to Spend Up to $14.7 Billion to Settle Allegations of ...
Settlements Require VW to Spend up to $10 Billion to Buyback, Terminate Leases, or Modify Affected 2.0 Liter Vehicles and Compensate Consumers, and Spend $4.7 Billion to Mitigate Pollution and Make Investments that Support Zero-Emission Vehicle Technology
General Information
The U.S. government and Volkswagen (VW) have resolved allegations that VW violated the Clean Air Act by selling approximately 590,000 vehicles equipped with defeat devices.
States
The States, Puerto Rico, and the District of Columbia may obtain funds as Mitigation Trust Beneficiaries upon application to the Trustee to implement NOx reduction projects as defined in Appendix D-2 , including the DERA Option under the DERA State Grant Program.
Tribes
Federally recognized tribes may obtain trust funds as Beneficiaries upon application to the Trustee to implement NOx reduction projects as defined in Appendix D-2 , including the DERA Option under the competitive DERA Tribal and Insular Area Grant Program.
How much did VW spend on a settlement?
In two related settlements, German automaker Volkswagen AG (VW) has agreed to spend nearly $25 billion to settle allegations of cheating vehicle emissions tests and deceiving customers. VW’s use of a defeat device in its diesel vehicles enabled the vehicles to emit levels of oxides of nitrogen (NOx) significantly in excess of the limits set by the U.S. Environmental Protection Agency. NOx is a precursor to ozone formation and is also hazardous to human health. The automaker will spend $2.925 billion to mitigate the pollution from these diesel cars; $2 billion to invest in clean vehicle technology; and $10 billion in the vehicle recall program.
How much of the VW settlement was allocated to DC?
DC’s Beneficiary Mitigation Plan allocated 28 percent of VW settlement funds (approximately $2.3 million) to upgrade and repower five (5) old diesel-powered switcher locomotives at the Union Station and Ivy City railyards with new, much cleaner diesel engines (or electric engines if the technology becomes viable) over a six-year period.
How much did VW spend on NOx?
To mitigate the pollution of NOx emissions, VW will spend the $2.925 billion toward a Mitigation Trust, which will be allocated among the states. This total was determined by two partial settlements. The first settlement was geared towards 2.0 liter vehicles and required VW to pay $2.7 billion. The second partial settlement dealt with 3.0 liter vehicles and required VW to pay an additional $225 million.
How much did VW get paid for the Clean Diesel case?
The District of Columbia (Washington, DC) will receive $8.125 million as a result of the civil enforcement case, Volkswagen “Clean Diesel” Marketing, Sales, Practices, and Products Liability Litigation. The settlement stems from Volkswagen’s (VW) use of a defeat device in its light-duty diesel vehicles. These defeat devices allowed those vehicles to pass lab certified emissions tests, only to drastically exceed emissions standards for oxides of nitrogen (NOx) set by U.S. Environmental Protection Agency (EPA) when driven in real-world situations. The settlement funds are primarily intended to reduce NOx emissions from diesel vehicles.
How much does Volkswagen invest in clean technology?
To invest in clean vehicle technology, Volkswagen will fund the $2 billion towards zero emission vehicle (ZEV) technology through VW’s company, Electrify America, Inc. The company will use these funds toward ZEV infrastructure, increased accessibility, and outreach and awareness initiatives.
When is the public comment period for Volkswagen Settlement?
Notice of Public Comment Period - Input on the District’s Use of Volkswagen Settlement Funds: The deadline for public comment on the Draft Spending Plan was March 12, 2018 at 5:00 pm . Read More.
Does VW buy back leases?
Under the vehicle recall program, VW has agreed to buy back, terminate leases early, and provide repairs for 2.0 liter and Generations 1 and 2 3.0 liter diesel vehicles. VW will also provide cash payments to diesel car owners/lessees.
What is the Volkswagen Environmental Mitigation Trust?
The Trust is the result of settlements resolving allegations that Volkswagen violated the Clean Air Act through the use of emission testing defeat devices designed to cheat on federal emissions tests.
When will Virginia allocate VW funds?
Virginia plan to allocate the remaining VW Trust funds for the implementation of eligible mitigation actions by 2022. Questions and suggestions can be submitted to [email protected]. Sign up to receive updates from the VW Settlement email list.
How much money did the VW Trust give Alexandria?
Through DRPT's FY2020 grant cycle, $9 million of VW Trust funds were awarded to Alexandria, Blacksburg, and Hampton Roads for the replacement of 17 old diesel public transit buses with all-electric buses. The $9 million from the VW Trust will be augmented by $3.5 million from the statewide transit capital program, as well as $6.5 million in federal and local funds. This funding is detailed in the Six-Year Improvement Program and was approved by the Commonwealth Transportation Board. All 17 all-electric transit buses have been placed into service.
How much of the VW Trust is going to Virginia?
To date, DEQ has committed $82 million of the VW Trust allocated to Virginia for clean transportation projects. Investing in clean transportation projects will mitigate harmful air pollutants and climate change impacts, and help drive the transition to a zero emissions transportation system for all Virginians.
How many tons of NOx were sold in Virginia?
More than 16,000 were sold in Virginia, and produced over 2,000 tons of excess nitrogen oxides (NOx) in violation of federal pollution standards. DEQ administers the VW Trust through a state Beneficiary Mitigation Plan. This Plan is required for the state to accept and distribute funds allocated to Virginia from the Volkswagen settlement.
Alabama
Since 2020, Alabama’s Department of Economic and Community Affairs (ADECA) has awarded over $15 million to various alternative fuel projects aimed at reducing NOx emissions in the transportation sector. To date, projects for various fuel types have received grant funding in 3 separate rounds of distribution.
Florida
Receiving the largest share of VW Settlement Funds in our region, Florida’s Department of Environmental Protection has diligently used funding for many projects in the state. Following the funding distribution listed in the state’s Beneficiary Mitigation Plan (BMP):
Georgia
100% of VW Funds in Georgia were allocated to transitioning transit buses to diesel and electric vehicles in the Atlanta metro region.
North Carolina
Having arguably the most varied BMP in the Southeast, North Carolina’s plan was initially planned to be implemented in 3 phases but has been restructured into 2 phases, led by its Department of Environmental Quality (DEQ).
South Carolina
In 2019, South Carolina’s Department of Insurance was designated as the lead agency to distribute its VW settlement funds. In 2 separate rounds, the agency awarded all of the state’s allocated funds toward school and transit bus replacement programs.
Tennessee
Tennesse’s finalized BMP was released in late September 2018 and outlined how the state would prioritize environmental mitigation projects. Led by the state’s Department of Environment and Conservation, the agency will seek project solicitation in the following order:
What is Volkswagen Environmental Mitigation Trust?
The Environmental Mitigation Trust Agreement for State Beneficiaries provides a process that the states must follow in order to become beneficiaries under the Volkswagen Environmental Mitigation Trust Agreement.
What is Volkswagen Consent Decree?
In October 2016, Volkswagen (VW) settled with the U.S. government resolving claims that it violated the Clean Air Act by selling diesel vehicles that violated the U.S. Environmental Protection Agency’s (EPA) mobile source emission standards. The violation involved installation and use ...
Where to send comments on Florida's diesel mitigation plan?
Individuals interested in submitting general comments on Florida's approach to developing the State Beneficiary Mitigation Plan may also e-mail those comments to [email protected]. At this time, the Department is not soliciting funding requests or proposals for any specific diesel emissions mitigation project.
Which states are eligible for the Environmental Mitigation Trust Agreement?
Under the terms of Final Trust Agreement, all 50 states, the District of Columbia and Puerto Rico are eligible to become beneficiaries under the Environmental Mitigation Trust Agreement for State Beneficiaries.
Is Wilmington Trust a beneficiary of Volkswagen?
On January 29, 2018, Wilmington Trust filed with the court the Notice of Beneficiary Designation, confirming that the State of Florida is a Beneficiary to the Volkswagen Environmental Mitigation Trust.
Is Florida a beneficiary of Volkswagen?
On November 28, 2017, the State of Florida elected to become a Beneficiary under the Volkswagen Environmental Mitigation Trust Agreement by submitting the completed Certification Form to Wilmington Trust, N.A., the court-appointed Trustee.
North Carolina's Mitigation Plan
Governor Roy Cooper has designated the N.C. Department of Environmental Quality (DEQ) to manage North Carolina’s share of the VW Settlement, an agreement between the German automaker and the U.S. Department of Justice on behalf of the U.S. Environmental Protection Agency (EPA).
VW Settlement Phase 2
Phase 2 of the VW Settlement will invest nearly $68 million on projects to significantly reduce NOx emissions and improve air quality. Applications are now being accepted for several of these grant programs.
What is the settlement for Volkswagen?
Volkswagen Settlement. The State of Arizona is reaching out to inform the public of the recent Volkswagen (VW) Settlement. In two related settlements, German automaker Volkswagen AG (VW) has agreed to spend up to $14.73 billion to settle allegations of cheating emissions tests and deceiving customers.
How much did VW pay Arizona?
Under the settlement, VW agreed to pay Arizona consumers up to $1,000 for every qualifying vehicle. This settlement was managed through the Attorney General's Office. For more information, please refer to the Arizona Attorney General's website or call the claims administrator at 1-866-507-8035.
How much money did Arizona receive in settlement funds?
Over the next ten (10) years, the State of Arizona will receive nearly $57 million dollars in settlement funds for projects that reduce nitrogen oxide (NOx) emissions in areas of the state significantly affected by diesel emissions.
Who does VW solicit input from?
VW must solicit and consider input from states, municipalities, tribes and federal agencies. Ultimately, VW has discretion as to whether or not it will incorporate the input into its plan.
What year did VW use defeat device?
In 2015, Volkswagen (VW) publicly admitted that it had secretly and deliberately installed a defeat device -- software designed to cheat emissions tests and deceive federal and state regulators -- in approximately 590,000 model year 2009 to 2016 motor vehicles containing 2.0 and 3.0 liter diesel engines.
When is the ZEV cycle?
On April 9, 2017, Electrify America published the National ZEV Investment Plan: Cycle 1. The plan, which was approved by EPA, details the investments that will be made in the first 30-month cycle, which runs from Q1 2017 through Q2 2019:
What was the third partial settlement of Volkswagen?
Concurrent with the third partial settlement the United States Department of Justice resolved a criminal case against Volkswagen AG with a plea agreement for the offenses of conspiracy, obstruction of justice, and entry of goods by false statement; and the United States Customs and Border Protection resolved civil fraud claims with Volkswagen arising from the illegal importation of affected vehicles. Details on these resolutions are not included on this page.
When did the second partial settlement of Volkswagen be approved?
On May 17, 2017, the court approved the second partial settlement addressing ...
How much did Volkswagen contribute to the CAA 3.0 settlement?
Under the CAA 3.0 liter partial settlement, Volkswagen contributed an additional $225 million in funding to the mitigation trust fund. There are two mitigation trust agreements created pursuant to the settlement: one for states, Puerto Rico, and the District of Columbia and one for federally recognized Indian tribes.
What is the CAA 2.0 liter recall?
Under the CAA 2.0 liter partial settlement, Volkswagen must remove from commerce in the United States or perform an approved emissions modification on at least 85 percent of the affected 2.0 liter vehicles by June 2019. VW must also meet a separate 85 percent recall rate in California. If VW fails to reach the 85 percent recall rate, VW must pay additional funds into the mitigation trust in an amount equal to $85 million for each percentage point by which it fell short of the national recall target, and $13.5 million for each percentage point by which it fell short of the California recall target.
How much did Volkswagen pay for the 2.0 liter recall?
Volkswagen estimates that the total cost of achieving the 85 percent recall rate required under the CAA 2.0 liter partial settlement, and concurrently satisfying the FTC stipulated order and class action settlement agreement, will be up to $10.033 billion.
How many diesels were sold in 2016?
On January 4, 2016, and as amended on October 7, 2016, the United States filed a complaint against the Volkswagen entities alleging violations of the CAA with regard to approximately 590,000 diesel vehicles sold in the U.S.
When will the 3.0 liters be recalled?
Volkswagen must meet the 85 percent recall rate for the generation 1 affected 3.0 liter vehicles by November 30, 2019, and the generation 2 affected 3.0 liter vehicles by May 31, 2020. VW must also meet separate 85 percent recall rates in California.
Overview of Companies
- Defendants in these CAA partial settlements are Volkswagen AG, Audi AG, Dr. Ing. h.c. F. Porsche AG, Volkswagen Group of America, Inc., Volkswagen Group of America Chattanooga Operations, LLC, and Porsche Cars North America, Inc. (collectively here “Volkswagen”). 1. Volkswagen AGi…
Clean Air Act Certification Requirements and Violations
- The CAA and its regulations aim to protect human health and the environment, in part, by reducing harmful emissions from mobile sources of air pollution. The CAA partial settlements concern light-duty motor vehicles. Light-duty vehicles must satisfy tailpipe emission standards for certain air pollutants, including NOx. Pursuant to the CAA, the EPA administers a certification program t…
Mitigation
- The CAA 2.0 liter partial settlement required Volkswagen to fund a $2.7 billion mitigation trust fund. Under the CAA 3.0 liter partial settlement, Volkswagen contributed an additional $225 million in funding to the mitigation trust fund. There are two mitigation trust agreements created pursuant to the settlement: one for states, Puerto Rico, and the District of Columbia and …
Zero Emission Vehicle (Zev) Investment
- The CAA 2.0 liter partial settlement requires Volkswagen to invest $2 billion in ZEV charging infrastructure and in the promotion of ZEVs. The ZEV investments required by the CAA 2.0 liter partial settlement are intended to address the fact that consumers purchased these illegal vehicles under the mistaken belief that such vehicles were lower-emitting than others. Electrify …
Health Effects and Environmental Benefits
- NOx pollution contributes to the formation of harmful smog and soot, exposure to which is linked to a number of respiratory- and cardiovascular-related health effects as well as premature death. Children, older adults, people who are active outdoors (including outdoor workers), and people with heart or lung disease are particularly at risk for health effects related to smog or soot expos…
Civil Penalty
- Under the third partial settlement, Volkswagen has paid a $1.45 billion civil penalty for the alleged civil violations of the Clean Air Act.
State and Regional Partners
- The State of California, on behalf of its California Air Resource Board and the California Attorney General, joined the United States in both the 2.0 liter partial settlement and the 3.0 liter partial settlement.
Actions to Prevent Future Violations
- Volkswagen will take various measures to prevent future problems, including among other things the following (some but not all of the following requirements apply to the Porsche defendants). Pursuant to the third partial settlement, Volkswagen will ensure the personnel who test their vehicles for emissions compliance are separate from the personnel who design their vehicles. V…
For More Information, Contacts
- Volkswagen Case Team Air Enforcement Division U.S. EPA 1200 Pennsylvania Ave., NW Mail Code 2242A Washington, DC 20460 [email protected]
Alabama
- Since 2020, Alabama’s Department of Economic and Community Affairs (ADECA) has awarded over $15 million to various alternative fuel projects aimed at reducing NOx emissions in the transportation sector. To date, projects for various fuel types have received grant funding in 3 separate rounds of distribution. In June 2021, $4.1 million was awarded to help finance the insta…
Florida
- Receiving the largest share of VW Settlement Fundsin our region, Florida’s Department of Environmental Protection has diligently used funding for many projects in the state. Following the funding distribution listed in the state’s BeneficiaryMitigation Plan(BMP): 1. 70% was put towards electrifying buses 2. 15% was used as the state’s match to EPA ...
Georgia
- 100% of VW Funds in Georgia were allocated to transitioning transit buses to diesel and electric vehicles in the Atlanta metro region. Thus far, The Governor’s Office of Planning and Budget, the lead agency charged with developing Georgia’s Planand allocating funds, has awarded $38 million in replacing diesel-fueled buses with newer fossil fuel models, and has deployed 75 of these veh…
North Carolina
- Having arguably the most varied BMP in the Southeast, North Carolina’s plan was initially planned to be implemented in 3 phases but has been restructured into 2 phases, led by its Department of Environmental Quality (DEQ). Phase 1awarded $30 million to various projects across the state, including school and transit bus replacement, clean heavy-duty equipment, and Zero Emission V…
South Carolina
- In 2019, South Carolina’s Department of Insurance was designated as the lead agency to distribute its VW settlement funds. In 2 separate rounds, the agency awarded all of the state’s allocated funds toward school and transit bus replacement programs. The largest awardee was the Department of Education which put the funds towards purchasing propane school buses an…
Tennessee
- Tennesse’s finalized BMP was released in late September 2018 and outlined how the state would prioritize environmental mitigation projects. Led by the state’s Department of Environment and Conservation, the agency will seek project solicitation in the following order: 1. Class 4-8 School Buses; 2. Class 4-8 Shuttle and Transit Buses; 3. Class 4-7 Local Freight Trucks, Class 8 Local Fr…