VW U.S. emissions settlement “to cost $15 billion”

PanARMENIAN.Net - German carmaker Volkswagen has reportedly reached a $15bn settlement with U.S. car owners after admitting it cheated emission tests, BBC News reports.

The deal would offer to repair or buy back the affected diesel vehicles and pay owners compensation, according to sources close to the talks.

Last year, U.S. regulators discovered that VW cars were fitted with software that could distort emissions tests.

The German giant subsequently said 11 million cars were affected worldwide.

The U.S. settlement is still pending approval by a judge, but it would be the largest car scandal settlement in the country's history. The details are expected to be announced on Tuesday.

According to news agencies, the legal settlement sets aside $10 billion to repair or buy back around 475,000 affected vehicles with 2-litre diesel engines, and to compensate owners with a payment of up to $10,000.

Car owners would still be able to decline the VW offer and sue the firm on their own.

According to the sources quoted by news agencies, the deal also includes $2.7bn in funds to offset excess diesel emissions and $2bn for research into green energy and environment-friendly cars.