VW, Robert Bosch to pay $1.6 billion to settle U.S. diesel claims
The company could be forced to pay up to $4.04 billion if regulators don't approve fixes for all vehicles.
In December, VW said it had agreed to buy back 20,000 vehicles and expected to fix another 60,000. The settlement documents show that if regulators do not approve fixes, the German automaker's costs could jump dramatically.
Under the settlement that must be approved by a U.S. judge, owners of 3.0 liter vehicles who opt for fixes will get compensation of between $7,000 and $16,000 from Volkswagen if emissions fixes are approved in a timely fashion - and the automaker will pay another $500 if the fix affects a vehicle's performance.
Owners who opt for a buyback will get $7,500 on top of the value of the vehicle.
Volkswagen could be forced to pay as much as $4.04 billion - and much more in individual owner compensation - if regulators reject a fix entirely, according to the U.S. Federal Trade Commission, which had sued VW and voted unanimously to back the deal. ■