The VW diesel scandal continues in a sort of limbo after the deadline for the automaker to propose its solution to the US government kept getting pushed back and back. A $10-billion road out of this big unknown is being hinted at by a new report from Bloomberg, which says that VW's solution includes an offer to pay owners of its affected diesel cars up to $7,000 each and also pay for a pollution offset fund. It was previously reported that VW might pay owners $5,000 for each vehicle. The plan will be officially submitted June 28.
As you might remember, the scandal (in the US, at least) revolves around about a half-million TDI vehicles here that emit more (a lot more) NOx than they are supposed to because Volkswagen built in software that was designed to get around emissions tests. Bloomberg says that the clean air offset fund might be included in the deal because VW won't be able to fix all of the vehicles. The program might work like the program funded by the Diesel Emissions Reduction Act. DERA funds help retrofit dirty diesel vehicles on the road to make them cleaner.
That "up to $7,000" amount could be as little at $1,000, Bloomberg says, because the final value will be determined by the age of the vehicle, among other things.
If the final fee in the US does come to $10 billion, that'll be a good deal less than the original number that was bandied about when the scandal broke last September of $18 billion, but the global costs will surely continue to grow.
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As you might remember, the scandal (in the US, at least) revolves around about a half-million TDI vehicles here that emit more (a lot more) NOx than they are supposed to because Volkswagen built in software that was designed to get around emissions tests. Bloomberg says that the clean air offset fund might be included in the deal because VW won't be able to fix all of the vehicles. The program might work like the program funded by the Diesel Emissions Reduction Act. DERA funds help retrofit dirty diesel vehicles on the road to make them cleaner.
That "up to $7,000" amount could be as little at $1,000, Bloomberg says, because the final value will be determined by the age of the vehicle, among other things.
If the final fee in the US does come to $10 billion, that'll be a good deal less than the original number that was bandied about when the scandal broke last September of $18 billion, but the global costs will surely continue to grow.
Related Video:
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