Back in April, Volkswagen reached a deal with U.S. authorities that finally answered the central questions in the company’s emissions-cheating scandal: what happens to the 500,000 offending VW vehicles in the U.S. and how their owners will be compensated.
Two months ago, the EPA and a judge in San Francisco approved a settlement that would allow Volkswagen owners to choose to have their cars fixed or bought back. (Under the agreement, drivers with leases could cancel them.) The official amount was unclear back in April, but in recent days—ahead of the official court announcement next Tuesday—sources told the AP that the settlement amount will be about $10.2 billion. An anonymous source told The New York Times that that all owners of the affected cars will receive an average of $5,000 in compensation, whether they choose to sell their cars to VW (at pre-scandal market price) or opt for the the fix.
The settlement doesn’t include the fines Volkswagen is facing in an ongoing lawsuit filed by the U.S. Justice Department for violating the Clean Air Act—a suit that could result in as much as $48 billion in fines. Volkswagen is also being sued by its shareholders, on the grounds that the scandal has eroded the company’s value. Its stock price has fallen 40 percent in the past year.