Some Delaware VW owners to get cash payments
(AP Photo/Gene J. Puskar
Delaware Volkswagen owners affected by the car maker’s emissions cheating scandal will receive at least $5,100 in restitution.
More than 1,700 Delaware owners and lessees of certain 2.0-liter diesel Volkswagen vehicles from model years 2009 to 2015 will see a payout, according to the attorney general’s office.
The German automaker agreed to a $15.3 billion settlement following consumer lawsuits nationwide and government allegations that certain models of its diesel cars were outfitted with devices that allowed those vehicles to skirt U.S. federal emissions standards.
The proposed settlements require VW to recall 475,000 of its 2.0-liter VW and Audi diesel vehicles. Models covered by the settlement include the 2009-2015 Jetta and Audi A3, the 2010-2015 Golf and the 2012-2015 Beetle and Passat. VW must also make cash payments to its affected customers, and buy back or modify the vehicles.
The automaker will also pay more than $570 million to the states for violating state laws prohibiting unfair or deceptive trade practices. Delaware’s piece of the pie amounts to $2.5 million.
Delaware Attorney General Matt Denn said VW misrepresented its cars as being environmentally friendly or “green,” when it knew all along its vehicles were polluting the air at rates many times higher than the law permitted.
“This was an egregious, calculated, and intentional deception by a company affecting not only its customers but every member of the public,” Denn said. “Customers will be able to sell their cars back to Volkswagen under this agreement, or have their cars fixed at Volkwagen’s expense if a proper fix is identified, and VW will have to pay to offset the damamge it caused to the environment through its falsified emissions results as well as pay penalties for its actions.”
U.S. District Court Judge Charles Breyer still has to approve the settlement. A hearing for preliminary approval has been set for later this month, with final approval expected in October.
Tuesday’s settlement announcement is believed to be the largest auto-related class-action settlement in U.S. history.
Following the announcment, Volkswagen AG CEO Matthias Mueller said in a statement, “We take our commitment to make things right very seriously and believe these agreements are a significant step forward.”
In April, VW said it has set aside $18.2 bllion to cover the cost of the global scanda, which includes a total of 11 million vehicles worldwide.
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