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Thursday 23 June 2016 6:44 pm

Reports: Volkswagen agrees to shell out $10bn to settle emissions-cheating scandal

By: Hayley Kirton

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Volkswagen has agreed to pay around $10bn (£6.7bn) to settle the emissions-cheating scandal, according to various reports.

Last year, the German car manufacturer found itself in the firing line after confessing to fitting vehicles with devices designed to skew emissions tests. 

According to Bloomberg, the settlement bill includes cash pay outs for owners of Volkswagen cars of between $1,000 and $7,000 and payments to fund a grant programme to offset air pollution. 

The settlement is due to be formally submitted to a federal judge next week and it has also been reported that the final details of the deal may be altered before then, as discussions are still ongoing.  

Read more: VW set for face-off with investors in Germany at shareholders’ meeting

Volkswagen declined to comment and it is understood that the judge who has been supervising the discussions has issued a gag order.

The revelation comes a day after the company's AGM. In a statement published at the start of the meeting, chief executive Matthias Muller announced that the car maker had recently been granted regulatory approval to recall another one million vehicles for fixes, bringing the total number of vehicles recalled by the company to over 3.7m.

Muller also made reference to the trust issues raised by the scandal, saying: "What’s done cannot be undone. But what does lie in our power is ensuring we act in a responsible manner. This is our commitment to you."

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