VW and Bosch’s settlement offers

We’ve probably lost count of how many settlements have been made over in the U.S. since the emissions scandal erupted in September 2015.

Volkswagen (VW) has agreed to pay out over $20 (£16.1) billion in a bid to end the civil and criminal lawsuits in America over the emissions scandal. The pay-out extends to around 600,000 vehicles.

Affected vehicles

580,000 affected VW, Audi and Porsche vehicle owners can get redress as a result of the scandal. The 2.0-litre diesel vehicles that were found to be involved are:

It doesn’t come as a surprise that the more luxurious 3.0-litre diesel engines were also found to be cheating emissions which includes:

Redress for affected vehicle owners

The position in the U.S. seems to be the most favourable position worldwide, as owners of the above (excluding 3.0-litre vehicles post 2012) can either choose to sell their affected vehicles back to VW for a value before the scandal broke out (i.e. before September 2015) or they can choose to have their vehicle’s repaired for free.

Of course, there is no guarantee that there won’t be any adverse effects post-emissions ‘fix’. But, I guess that’s where the catch is; the VW Group are putting pressure on individuals to get their vehicles ‘fixed’ so there is that perception that the German manufacturer is actually doing something and offering ‘redress’ to the affected vehicle owners.

Compensation

Additional compensation is also offered to owners from VW and Bosch (the mastermind behind the “defeat device”). The amount of compensation depends on whether it’s a 2.0 or 3.0-litre vehicle. Those in ownership of a 2.0-litre vehicle should be offered compensation between $5,100 and $10,000 (£4,100 and £8,000), and should also receive $350 (£282) on top of that from Bosch. Those in ownership of the more luxurious 3.0-litre vehicles are set to be offered between $7,000 and $16,000 (£5,640 and £13,000), and an additional $1,500 (£1,200) from Bosch.

Opt-in settlement offer

The settlement isn’t mandatory; affected vehicle owners must “opt-in” to receive the compensation; but if they’re affected, then they should be entitled to the compensation.

Affected vehicle owners who choose not to accept compensation can sue the VW Group by either participating in a group action or taking a claim directly against VW. There is a huge risk with this option as the affected vehicle owners may receive a smaller sum through litigating or risk getting nothing at all; this is in the event that the lawsuit is unsuccessful.

U.S. VW has been in the process of recalling and/or buying back the 2.0-litre vehicles. VW has been given the deadline of until December 2018 to complete all recalls and buybacks. The confirmation of the 3.0-litre diesel vehicles settlement is still under review by a federal judge, which is estimated to take up until May.

Bosch’s involvement

Bosch is one of the world’s leading auto software suppliers who reportedly developed the software that is said to be responsible for the computers in the diesel engines switching emissions controls when being tested in the laboratory versus when driven in the ‘real-world’. The “mastermind” of the “defeat device” has agreed to compensate U.S. consumers $327.5 (£263) million for their participation in the cheating scandal.

Multiple countries, including Germany, are investigating Bosch’s involvement in the scandal as we speak, and they’re set for more proceedings as time goes on.

Here in the UK

Mr Paul Willis – the Managing Director of Volkswagen UK – thinks VW has done nothing wrong here in the UK. He says that in the UK and Europe they did not use “defeat devices” despite their admissions in the US.

We disagree.

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