Dieselgate: VW set to scrap half a million cars in America

Time 5 years ago

VOLKSWAGEN US will have to scrap half a million cars as it’s forced to buy back those affected by the emissions scandal. 

The mass scrapping is just one of a series of measures laid out in settlement agreements with the United States government and legal bodies in the wake of ‘Dieselgate’.

Others include vehicle buybacks, lease terminations, emissions modifications and cash payments to affected customers.

Volkswagen has also agreed to commit $2.7bn to an environmental remediation fund, and will also invest a further $2bn in initiatives to encourage the use of zero-emissions vehicles within the US over the next 10 years.

Matthias Müller, CEO of Volkswagen AG, said: ‘We take our commitment to make things right very seriously and believe these agreements are a significant step forward.

‘We appreciate the constructive engagement of all the parties, and are very grateful to our customers for their continued patience as the settlement approval process moves ahead.’

The settlement agreements are designed to cover the 475,000 affected 2.0-litre TDI vehicles on the road in the US. Of that number, 460,000 are thought to be Volkswagen vehicles, with the remaining 15,000 being Audis.

Volkswagen is to set up a single funding pool of $10bn to cover the cost of buying back or terminating the leases of affected vehicles.

The company has also agreed to provide customers with free emissions modifications, pending approval from the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB).

All of Volkswagen’s proposed settlement agreements are subject to the approval of Judge Charles R. Breyer, who is presiding over the case.

Müller said: ‘We know that we still have a great deal of work to do to earn back the trust of the American people.

‘We are focused on resolving the outstanding issues and building a better company that can shape the future of integrated, sustainable mobility for our customers.’

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Dave Brown's avatar

Dave, production editor on Car Dealer Magazine, is a journalist with more than 30 years' experience in the worlds of newspapers, magazines and public relations.

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