Volkswagen settles in multi-billion deal
The automaker’s image isn’t on the road to recovery just yet. After producing cars with faulty emissions systems, the German company will have to pay—and then some.
When it comes to repairing a damaged reputation, Volkswagen has a long road ahead.
Volkswagen executives are starting to learn the extent of their punishment for the emissions testing scandal that recently rocked the auto industry.
In a record settlement that marks the beginning of the company’s woes, it will pay an estimated $14.7 billion to buy back the diesel cars that were designed to cheat emissions tests or to compensate those who elect to have theirs fixed.
Deputy Attorney General, Sally Yates called it:
The most flagrant violations of our consumer and environmental laws in our country’s history. We cannot undo the damage that’s been done to our air quality, but we can offset that damage.
There isn’t a quick fix for the affected cars, whose software detects when an emissions test is taking place and changes the car’s output.
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