VW avoids Federal US trial by paying diesel customers 5000 dollars

[webfact]

VW avoids Federal US trial by paying diesel customers 5000 dollars
By Robert Hackwill



WOLFSBURG: -- Volkswagen has reached a deal with the US authorities just hours before the expiry of a deadline to settle in its case of cheating its diesel emissions tests.

It involves compensating every affected customer with a 5000 dollar payment, and paying to fix the nearly 600,000 vehicles with the corrupted software.

However the deal lacks a detailed plan on how to fix the problem, and details on the fines and other compensation according th German media. VW refused to comment, but if the deal is confirmed the German car giant avoids going to trial.

However European consumers with similar cars will be watching. VW says it is increasing the money set aside to compensate customers.

-- (c) Copyright Euronews 2016-04-21

[webfact]

Source: VW to pay $1B to diesel owners, buy back some cars
By TOM KRISHER

DETROIT (AP) — Volkswagen, the U.S. government and private lawyers have reached a deal for the automaker to buy back some of the 600,000 diesel cars that cheat on emissions tests and spend just over $1 billion to compensate owners, according to a person briefed on the matter.

The "deal in principle" includes a maximum amount of spending, but the final details, like how much each owner would get, are still being worked out, according to the person, who asked not to be identified because the deal hasn't been made public.

Some owners would get a choice of having VW repair their cars or buy them back, but that would vary by model year and engine type, the person said. The deal likely is part of a bigger payment package from VW. It does not yet include plans on how to repair the cars, the person said. The cars can spew out harmful nitrogen oxide at 40 times the allowable limit, the person said.

The agreement is likely to be announced Thursday morning during a federal court hearing in San Francisco. The person says it will not include plans to fix the cars. Those plans, and the cost of the fixes, apparently are still under negotiation.

"They've agreed on a maximum amount of money, over $1 billion" for compensation, said the person. "How it's allocated and distributed, that remains to be seen."

It means that owners likely won't find out Thursday how their cars will be fixed, nor will they know exactly how much they will get in compensation. With $1 billion to spend, it works out to about $1,700 per car. But some owners of newer models who get just a software fix may receive little. About 325,000 owners of older cars that require more extensive repairs likely will get more, because the repairs could affect mileage and performance.

At the hearing, Senior U.S. District Court Judge Charles Breyer also is to discuss a schedule for depositions and information exchange between all sides in the case. He could even set a trial date if he's dissatisfied with the agreement.

Representatives for Volkswagen, the lawyers, and the government all declined comment Wednesday. Wyn Hornbuckle, spokesman for the Justice Department, which has sued Volkswagen, said federal officials would wait until Thursday's hearing before speaking. John Gersten, a spokesman for a law firm representing hundreds of Volkswagen owners, said a confidentiality order barred the firm from making any comment.

The owners filed dozens of lawsuits against VW after it acknowledged in September that it intentionally defeated emissions tests and put dirty vehicles on the road. The cheating allowed cars to pass laboratory emissions tests while polluting on real roads.

Volkswagen told its shareholders last year it had set aside $7.3 billion to help defray the potential costs of a recall or regulatory penalties. Most outside observers have said that figure is likely far too low. The company faces as much as $20 billion in fines for Clean Air Act violations alone, before paying to fix the cars or compensate their owners.

Breyer has told the lawyers to come up with repair and compensation plans before Thursday's hearing or face a trial. He wants to know the timing of any fixes and any planned payments to owners, among other details, by Thursday. It was unclear if the plans would satisfy the judge's request.

Lawyers for the owners have said in court papers that if there's no deal, they want an expedited hearing or a trial before the judge to get an order for "equitable relief" that would begin in July. Or they want a full trial that would include punitive damages against VW in the same time frame.

Volkswagen says in documents that it does not believe a hearing or trial is appropriate, apparently because progress is being made toward a fix and compensation. A solution could be revealed at Thursday's hearing.

The first item on Thursday's agenda is a report on the status of fixing the cars and "related discussions." It also includes a request to add the Federal Trade Commission to the case. The FTC has sued VW alleging deceptive advertising. The owners' lawyers also are seeking documents that Volkswagen provided to the law firm Jones Day, which the company has hired to investigate how the cheating happened.

California Air Resources Board enforcement chief Todd Sax said last month he doesn't think it's technically feasible to repair any of VW's 2-liter diesel engines, under the hoods of most of the models at issue, to meet that state's stringent clean air rules.

Breyer said in March that former FBI Director Robert Mueller told him Volkswagen, government regulators and attorneys for car owners had made substantial progress toward a resolution that would get the polluting cars off the road. He did not provide any details. Breyer appointed Mueller to oversee settlement talks.

___

Associated Press writers Michael Biesecker in Washington and Sudhin Thanawala in San Francisco contributed to this story.


-- (c) Associated Press 2016-04-21

[helpisgood]

I read in a couple of other articles (not OP) that there are currently some criminal investigations by the US Justice Dept. and by prosecutors outside the USA.

I wonder how that will play out.

Edited April 21, 2016 by helpisgood

[little mary sunshine]

Guess VW had their "bean counters"

Working overtime!!!

[Srikcir]

Nissan and Mitsubishi next?

[AlphaSoiDog]

Meanwhile all the other manufacturers quietly cover their tracks....

[Lampang2]

Explains why my vw stocks went up 7% yesterday.

[Srikcir]

Explains why my vw stocks went up 7% yesterday.

7% increase now is relative to value last year.

Last year stock value dove 50% with news of the USA federal lawsuit.

VW was facing $18-50 billion in federal fines which it will avoid with the current deal. VW had market capitalization of only about $80 billion. So removing the spector of virtual corporate destruction was relatively good news for stockholders - and stock value increased minutely. If you just bought this stock you have the potential for gain. If you acquired it prior to the lawsuit, any gain is going to take a while.

[sanukjim]

I read in a couple of other articles (not OP) that there are currently some criminal investigations by the US Justice Dept. and by prosecutors outside the USA.

I wonder how that will play out.

This is just the federal charges that may be reached there are still indivual state charges costing in the billions to be settled.California is sueing for over 11 billion.By By VW

[helpisgood]

I read in a couple of other articles (not OP) that there are currently some criminal investigations by the US Justice Dept. and by prosecutors outside the USA.

I wonder how that will play out.

This is just the federal charges that may be reached there are still indivual state charges costing in the billions to be settled.California is sueing for over 11 billion.By By VW

Correct me if I am mistaken (been a bit busy today) and maybe I misunderstood you, but I think the OP article is about settling a civil lawsuit.

What I was instead referring to was criminal charges and prosecution. Most especially, I think we have become all too familiar as to how those who have committed white-collar crimes escape prosecution while some guy off the street commits a lesser crime and gets time in prison (see e.g., Wall Street in 2008). I am not very familiar with white-collar crime, but I seem to recall reading that one problem for prosecutors is singling out the one or several people who are the actual culprits. I don't know if RICO could possibly apply or not. Maybe someone knows more of the relevant details than I do.

[Toany]

Don't be surprised if your car's fuels consumption suddenly rises after your next service. My Mazda jumped by 8%