Volkswagen to get S$462 million in dieselgate settlement

Volkswagen’s dieselgate emissions testing scandal takes a new turn. The incident that plagued the Volkswagen Group for over years now finally has a settlement. The German automaker is about to receive settlements totaling 287.8 million euros (S$ 462.4 million), from its former executives, as a part of the agreement. 

The corporate judgment that was approved by the U.S. District Judge Charles Breyer, passed the verdict around the largest settlement claims in corporate history. Considering the payments that’ll be incoming, the German automaker said it would begin buying back polluting cars in mid-November.

Talking of the settlement, the automaker will be receiving the above-mentioned compensation in a manner where 270 million euros (S$ 433 million) will come from its directors’ and officers’ (D&O) insurers.

Volkswagen CEO Matthias Mueller told reporters in Berlin that Breyer’s approval was “an important milestone for us on the way towards clearing up the problem that we caused some time ago.” Hinrich Woebcken, president and CEO of Volkswagen Group of America, also affirmed on carrying out the terms “as seamlessly as possible.”

Interestingly, the judge also turned down objections from car owners who were under the impression that the settled amount was not enough, saying it “adequately and fairly compensates” them. Currently, as per the decision, owners will get the pre-scandal “trade-in” value of the vehicle and $5,100 to $10,000 in additional compensation.

“Given the risks of prolonged litigation, the immediate settlement of this matter is far preferable,” Breyer wrote.

It was earlier in March when the automaker Volkswagen said it found breaches in the duty of care while investigating. The tampering of emissions test results that were previously blamed on a small group of engineers.

Lastly, the ongoing diesel scandal has caused the group of companies a collective cost of above 32 billion euros (S$ 51 billion). The total amount includes fines, legal fees, and component refits.

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