Volkswagen will pay up to $15 billion to settle consumer lawsuits and federal allegations stemming from its September admission that it cheated on U.S. emissions tests.
As part of the settlements, Volkswagen, who also owns Porsche and Audi, will direct more than $115 million to New York for environmental projects to improve New York’s air quality, as well as more than $30 million to the state’s general fund.
Under the settlements, some of which are still subject to court approval, owners of the more than 487,000 2.0-liter engine diesel vehicles that Volkswagen and Audi falsely marketed as compliant with federal and state emissions standards will be paid full, pre-scandal fair market value for their vehicle, in addition to a cash payment of at least $5,100.
Car owners may also choose to keep their vehicle and wait to see if Volkswagen and Audi develop acceptable emissions fixes. Those who exercise this option will also receive a cash payment of at least $5,100.
Attorney General Eric T. Schneiderman said New York will continue its investigation into the scope of Volkswagen’s illegal conduct and their liability for environmental penalties.
“The evidence reviewed so far concerning Volkswagen, Audi and Porsche points to a culture of corporate arrogance and conscious disregard for the rule of law and the rights of consumers,” Schneiderman said. “These partial settlements announced today exact a stiff price from Volkswagen for its deception of consumers and the environmental damage it has caused in New York and across the country.”