Bloomberg reported this weekend that according to an unnamed source, Volkswagen AG will submit a $10 billion plan as part of its American TDI settlement. The plan will go before a judge who will decide on whether or not the plan is acceptable on June 28.
The plan sets aside $6.5 billion for car owners and $3.5 billion for the US government and California regulators. It is also said to include a buy-back option or the termination of a lease without penalty.
It also includes an option to repair the affected diesel cars, but Bloomberg reports that neither the EPA, nor the California Air Resources Board has approved VW’s proposed fixes. In Europe, meanwhile, more than a million cars have already been recalled to have the diesel fix applied.
Bloomberg goes on to report that there is no timetable for when the fix might be applied, nor is there a guarantee that there will even be an approved fix.
“There’s just no precedent for what happens if there’s not a fix,” John German, a project manager with the International Council on Clean Transportation, told Bloomberg. “We just don’t know. It’s all speculation.”
Even if the plan, with all its unknowns, is approved, more fines could come to Volkswagen from states and lawsuits. Despite that, VW’s CEO is plowing forward with plans to become a world leader in electric mobility.
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