Judge OKs $15B for VW diesel owners
Owners can choose buy-back or repair; NM could get up to $17M
SAN FRANCISCO — A federal judge approved the largest auto-scandal settlement in U.S. history Tuesday, giving nearly half a million Volkswagen owners the choice between selling their cars back or having them repaired so they don’t cheat on emissions tests and spew excess pollution.
U.S. District Judge Charles Breyer said the nearly $15 billion deal “adequately and fairly” compensates consumers and gets the polluting vehicles off the road as soon as possible.
New Mexico could get up to nearly $17 million from the settlement, the state Attorney General’s Office confirmed Tuesday. The state’s share would come from $2.7 billion in the settlement for unspecified environmental mitigation and $2 billion to promote zero-emissions vehicles.
The environmental mitigation fund is set aside for states to invest in clean-air measures intended to reduce damage to air quality caused by vehicles and machinery, the AG’s Office said. The EPA has provided suggestions on possible uses, but the state has not yet determined how it would spend the money.
The state of New Mexico still has a separate action pending against Volkswagen.
Volkswagen acknowledged last year that about 475,000 Volkswagens and Audis with 2.0-liter, four-cylinder diesel engines were programmed to cheat on emissions tests.
The settlement calls for the company to spend up to $10 billion to buy back or repair those vehicles’ engines and pay their owners an additional $5,100 to $10,000 each. Volkswagen could start buying back the cars as early as next month. Regulators have not approved any fixes.
Breyer said in his order approving the settlement that affected car owners were not entitled to a full refund because many had “received a great deal of use out of their vehicles.”
The scandal has damaged Volkswagen’s reputation and hurt its sales. The company is still facing potentially billions more in fines and penalties and possible criminal charges.