Volkswagen faces $10 billion preliminary settlement after the Northern California District Court rules favorable decision to car owners in a lawsuit. The case stems from Volkswagen admitting in Sept. 2015 that it cheated on US emission tests.
Volkswagen issues public apology in Sept. 20, 2015 and admits that half a million units have "computer brain" that will switch on to pass emission test. The electronic device then automatically shuts off after the test to provide better performance and speed under normal use. Dave Clegern of the California Air Resources Board confirms that there are technical discussions in place to avoid excess Volkswagen emissions.
Meanwhile, Volkswagen announced that punitive trial is not necessary. The company also sets online service where owners can input their car's ID number to check if they are affected by the "defect". Volkswagen also offers amicable settlement with car owners and agrees to fix affected units. However, only 44 percent agree to this proposal as of August 2016.
US District Court Judge Charles Breyer clarifies details about the $10 billion settlement during the August 25 Status Conference. The court also orders Volkswagen to intensify the buy-back option for the owners. Those who want to keep their cars may do so but Volkswagen is still obliged to repair each unit. Then every owner is guaranteed of up to $10,000 in damages.
Considering the decision as preliminary, several changes may still apply. The District Court schedules October 18 for the issuance of Final Fairness Hearing.
Manufacturer's records show a total of 475,000 units of Volkswagen and Audi "cheating cars" being sold. These include productions from 2009 up to 20015 including models; Jetta, Beetle, Golf and Passat. Audi cars that were affected are 'A3 TDI Premium' and 'Prestige' made in 2010 to 2015.
Of these number, 210,00 owners agree to the settlement while the majority are undecided yet. These owners have until September of 2018 to register and avail of the settlement. Meanwhile, those who signs for it have at least two weeks to rescind from the settlement.
The District Court also reveals parallel document saying that there are more than a hundred who filed objections to the Volkswagen settlement. There are also 235 more who filed separate claims for compensation and damages.