Volkswagen will pay between $1,000 and $7,000, and in some cases as much as $10,000, to owners of cars that were affected by the diesel emissions scandal, according to reports from Bloomberg and The Wall Street Journal. The reports state that the payouts will vary depending on factors like the age of each vehicle, and each attributes the information to unnamed sources close to the ongoing talks — no surprise, considering that a gag order has been issued by the US District Judge who is overseeing the case. The deadline for the settlement decision is June 28th.
The decision to compensate owners of vehicles that were affected by the company's emissions-cheating efforts came back in April, though it was unclear at the time how much the individual payouts would be. It was rumored that they would be around $5,000 each, which — based on the fact that almost 500,000 two-liter engine vehicles were affected — would account for an almost $3 billion payout. But earlier this week Bloomberg reported that the total cost of customer payouts could be as high as $6.5 billion, a number that seems more in line with today's report.
Volkswagen isn't just on the hook for customer payouts — it's also expected to pay around $3.5 billion to the US government and regulators in California. But money isn't the only result of the fallout. The CEOs of Volkswagen and of Volkswagen USA have both been replaced, and the company has majorly shifted its focus toward electric vehicles.
A fix for the affected cars, however, is still in the works. Volkswagen submitted a proposal in November, but it was rejected by the California Air Resources Board earlier this year.