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WASHINGTON, June 28 (Xinhua) -- German automaker Volkswagen on Tuesday agreed to pay up to 14.7 billion U.S. dollars to settle civil allegations from U.S. authorities on emission cheating revealed last September.
Volkswagen agreed to set aside 10.03 billion dollars to offer consumers a buyback and lease termination for nearly 500,000 model year 2009-2015 2.0 liter diesel vehicles sold or leased in the United States, said the Department of Justice on Tuesday.
Consumers who choose the buyback option will receive between 12,500 dollars to 44,000 dollars, depending on their car's model, year, mileage, and trim of the cars, as well as the place where it was bought.
The affected vehicles include 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, Golfs and Beetles as well as the TDI Audi A3.
The company will also pay 2.7 billion dollars to mitigate the pollution from these cars over the next three years and invest 2 billion dollars in green vehicle technology in the next ten years.
"This partial settlement marks a significant first step toward holding Volkswagen accountable for what was a breach of its legal duties and a breach of the public's trust," said Deputy Attorney General Sally Yates.
"Let me be clear, it is by no means the last. We will continue to follow the facts wherever they go," said Yates.
Tuesday's settlements do not resolve pending claims for civil penalties or any claims concerning 3.0 liter diesel vehicles, as well as any potential criminal liability, said the Department of Justice.
Consumers will get payments as early as October this year when the settlement is approved by the court.
Volkswagen's emission scandal broke out in September when the U.S. Environmental Protection Agency (EPA) released that the German car maker installed a software to evade authority' s emission control in about half million 2.0 liter diesel cars sold in the United States since 2008. In November, the EPA found some 3.0 liter diesel cars sold by Volkswagen had the same problems.
One behalf of EPA, the Department of Justice filed civil complaint against Volkswagen in January, accusing the company violated the Clean Air Act, while the U.S. Federal Trade Commission (FTC) sued the company in March, charging it deceived consumers. Enditem
