The deadline for Volkswagen to propose a fix for its emissions-cheating diesel vehicles is fast approaching. And when the June 28 due date arrives, VW could offer a whole boatload of cash?and a mechanical fix that might not ever happen.
Speaking with a knowledgeable insider who requested to remain anonymous, Bloomberg reports that Volkswagen is preparing a proposal that includes $10 billion in make-good money. According to the insider, $6.5 billion would go to owners of Volkswagen Group vehicles equipped with the emissions-cheating software, with the remaining $3.5 billion set to go to the U.S. government and to California state regulators.
According to the report, the proposal will also allow affected car owners to sell their vehicles back to Volkswagen or terminate their leases without penalty. It also will offer owners the option of registering to have their emissions-cheating diesel vehicles repaired to comply with U.S. regulations. But that repair actually might not ever happen, Bloomberg reports: ?Because the U.S. Environmental Protection Agency and the California Air Resources Board haven?t approved VW?s proposed fixes, the deal as of now includes an option for car owners to request their vehicles be repaired, but there?s no timetable for doing so or a guarantee there will be an approved fix,? the person said.
The unnamed insider told Bloomberg that Volkswagen has capacity to fix about 5000 affected vehicles per week. With nearly 500,000 emissions-cheating Volkswag...