Earlier this week, we reported on the details of Volkswagen?s potential fix for its TDI emissions scandal as the company nears its latest deadline, June 28, to submit a proposal. As that date gets closer, a few more details have emerged regarding what that fix will entail. If these reports are to be believed, it won’t be cheap for VW.
Citing an anoymous source, the Associated Press reports that Volkswagen has agreed to pay out as much as $10.2 billion in the U.S., most of which will be used to compensate owners of cars equipped with emissions-cheating software. Each payout for the nearly 500,000 U.S. car owners affected will be between $1000 and $7000, with most owners set to receive around $5000. The AP source said that the exact figures could change before the settlement is announced on Tuesday. An earlier report notes roughly $3.5 billion of that alleged settlement money will go to U.S. federal government and California regulators. That report also noted that it might be impossible for VW to fix the affected cars, due to the huge logistical challenges of trying to repair nearly 500,000 cars and the fact that there still is no regulator-approved fix for the 2.0-liter TDI engine. Given that many of the cars are likely never to be fixed, Bloomberg reports that a focus of the fines will be funding cleanup from diesel emissions in a program modeled after the Diesel Emissions Reduction Act, which replaces or retrofits older diesel buses and the like.

VW...