Roughly nine months after details emerged about Volkswagen’s diesel-emissions scandal, the German carmaker has reached settlement terms with U.S. regulators. Last week, the AP reported that the settlement amount would likely add up to around $10.2 billion. Details released by Volkswagen on Tuesday reveal that the settlement exceeds that amount: The company will pay up to $15.3 billion, the largest settlement in automotive history.
That money breaks down into four parts: First, $10 billion has been set aside for compensating owners and buying back their vehicles. According to the filing, the nearly 500,000 owners of the affected cars will receive $5,100 to $10,000 in compensation, regardless of whether they choose to sell their cars to VW (at the pre-scandal market price) or opt to have the company fix them.
Second, Volkswagen will pay $2.7 billion into an EPA fund as penance for the environmental impact of its “clean diesel” cars—the researchers who discovered the “defeat devices” the company installed found some of those cars polluted 40 times the permitted levels of nitrogen oxides. This portion of the settlement will fund projects, unrelated to Volkswagen’s business, aimed at reducing nitrogen oxide pollution.