June 24, 2016—Volkswagen will pay the owners of vehicles affected by the recent diesel scandal between $1,000 and $7,000 and will fund a grant program to offset air pollution as part of a $10 billion settlement to the U.S., said unnamed sources close to the discussions, according to a report from Automotive News.
The settlement is a priority for regulators looking to reverse some of the damage from the 482,000 U.S. diesel vehicles fitted with a device that lowers emissions during inspections, but emits up to 40 times the permitted amount during normal driving.
VW isn’t expected to be able to fix all of the affected cars, which may result in vehicle buyback as well as paying more money into the environmental fund. The average owner will be paid around $5,000, while the settlement also includes VW to offer to buy back nearly 500,000 vehicles.
The talks between VW and U.S. regulators are not final and may change.
