5 Things to Know About the VAG Diesel Emissions Settlement
1. Affected Buyers Will Be Compensated
As part of a $10 billion dollar buyback program, VAG will be offering between $12,500 and $44,000 for cars purchased before September 17, 2015, depending on where they were purchased, the age, model and trim. Lessees will receive a cash value between $2,600 and $4,900. If you don't decide to sell your car back to VAG, you will still be compensated for lost resale value — between $5,100 and $10,000 — and you'll get a free emissions fix.
2. A Host of Fixes Are in the Works
To make its diesel engines compliant with emissions standards, VAG has to make a host of changes. The three generations of 2.0 liter engines will require a variety of fixes, everything from a simple software update to total hardware changes. The 3.0 liter is thought to only need a software fix and a new catalytic converter.
3. Class Action Lawsuits Are in the Works
There are literally hundreds of class action lawsuits popping up in the wake of the diesel scandal, mostly centered around the economic harm caused. People are understandably angry, especially the passionate diesel owners who thought they were helping the environment, not harming it. No matter what happens, VAG figures to be readying a large settlement for these lawsuits as well.
4. Emissions Cheat Tactics Are More Common Than Anybody Thought
Though they are grabbing all the headlines and paying out all the money, VAG isn't the only automaker who is guilty of manipulating emissions test results. Fiat Chrysler products in Europe have been found to use similar software, while Opel and Daimler have used software that shuts off emissions controls in certain temperatures. Chevy and Mitsubishi have both sold cars with inflated fuel economy ratings. If there's one thing that's clear, it's that automakers will face additional scrutiny moving forward.
5. What Will Happen to VAG Moving Forward
VAG is paying a hefty sum for its indiscretions; Aside from the $10 billion dollar buyback program, it must dish out $14.7 billion to the EPA, FTC, and Department of Justice. An additional $2.7 billion will be used to fund projects to help reduce emissions, and $2 billion will be used to fund green car projects. So far, the company hasn't seen major changes, but it has lost roughly a quarter of its market cap.
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