VW diesel owners in U.S. to get as much as $10,000 in compensation

(June 29, 2016) BERLIN — Volkswagen will buy back diesel engine cars from U.S. owners for their pre-scandal value and compensate them for their troubles by as much as $10,000, according to the settlement of U.S. civil claims stemming from the emissions scandal.

As part of Volkswagen Group's settlement of U.S. civil claims stemming from the scandal, the company pledged as much as $10 billion for some 500,000 car owners. However, the 8.5 million customers in Europe may only get an hour-long visit to the dealer to have their engines repaired with a tube that regulates air flow or a software update.

The reasons for the wide disparity between the proposals stems from equally large differences in legal and regulatory structures in each region.

The tab on the eastern side of the Atlantic has been held in check by factors ranging from the lack of U.S.-style class-action lawsuits to regulators who have approved repairs that were insufficient for their American counterparts.

Under the settlement filed Tuesday in a San Francisco court, VW set aside as much $10.03 billion to cover costs including buying back vehicles at pre-scandal values and compensating drivers as much as $10,000 per car for their troubles. VW also reached a deal with two U.S. agencies and with 44 states.

Sources: Bloomberg News, Automotive News