Volkswagen Emissions Scandal Update: Court Approves German Automaker's $15 Billion Settlement, Buybacks To Start Soon

A federal judge in San Francisco approved Volkswagen's $15 billion settlement about the emissions cheating scandal that was exposed last year. The German automaker will start with the buybacks soon.

The $15 billion court settlement is the largest amount to be approved in history. United States District Judge Charles Breyer signed the order on Tuesday. This comes after Volkswagen admitted last year that 475,000 Volkswagens and Audis with the two-liter four-cylinder diesel engines had programs installed on them in order to teach emission tests.

As per the settlement, the Volkswagen and Audi car owners have until Sept. 1, 2018 to have their vehicles fixed or repurchased by the company. Accordingly, Volkswagen could start with the buybacks as early as next month if the owners will be able to submit their claims, CBS News reported.

If owners decided to have Volkswagen re-purchase the vehicles, drivers are expected to get $5,100 to $10,000, Los Angeles Times reported. Breyer believes that the settlement is fair, adequate, and reasonable. The settlement does not affect the three-liter six-cylinder diesel vehicles from Volkswagen and Audi despite these being conditioned to cheat on emission tests. A total of 336, 612 Volkswagen owners have registered for the settlement while 3, 298 have opted out.

The cars that are involved in the Volkswagen emission test scandal reportedly emit as much as 40 times the allowable limit for nitrogen oxide. This then causes pollution and can cause respiratory problems in humans.

The payment will reportedly the trade-in price before the cheating scandal involving Volkswagen blew up on September 18, 2015. Many of the Volkswagen car owners said that they should receive the full purchasing price but the attorney for the German automaker said that the settlement is fair for buyers and it will help the company regain the trust of the people.

Aside from the re-purchasing and fixing the affected Volkswagen and Audi vehicles, the $15 billion settlement will also include the $2.7 billion payment for unspecified environmental mitigation and $2 billion for promoting zero-emissions vehicles.

Volkswagen has been struggling since the scandal broke as the sales have dropped and it is possible that the company will pay billions more in fines and penalties in other countries.