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Tuesday 25 October 2016 6:01 pm

VW’s $15bn settlement signed off by US courts

By: Hayley Kirton

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A US judge has today signed off Volkswagen's $15bn (£12.3bn) settlement stemming from the emissions-rigging scandal.

The car manufacturer last year confessed to fitting vehicles with devices designed to cheat emissions tests, prompting numerous investigations and legal actions across the world.

The settlement, which was agreed in principle in June, will see just under half a million owners of two-litre cars eligible for a payout worth around $10bn between them. Volkswagen also agreed to pay $2bn towards a programme to boost emissions technology and $2.7bn towards mitigating air pollution in the areas where the effected vehicles had been driven.

In signing off the settlement today, United States District Judge Charles Breyer said it was "fair, adequate, and reasonable".

Read more: European car sales grew in September

Calling the agreement "an important milestone in our journey to making things right in the United States", Hinrich Woebcken, president and chief executive of Volkswagen Group of America, added:

Volkswagen is committed to ensuring that the program is now carried out as seamlessly as possible for our affected customers and has devoted significant resources and personnel to making their experience a positive one.

There could be further payouts for the company down the line, as this deal does not cover the manufacturer's three-litre models. 

Read more: Investors want €8.2bn in damages from VW over the emissions scandal

The scandal has been more than just a financial calamity for Volkswagen. Shortly after news of the emissions rigging broke, then-chief executive Martin Winterkorn stepped down from his role, and was replaced by former Porsche boss Muller.

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