It is reported that Volkswagen will have to pay a sum of $1 billion for altering the engine performance of its diesel powered cars as they were tested, producing a suspiciously low levels of emissions when compared to regular driving conditions.
According to the U.S. Environmental Protection Agency, the rigged vehicles are able to release up to 40 times the amount of emissions that are permitted under legal guidelines.
The event will take its toll on the automaker giant Volkswagen, as this is the largest scandal in all of its history. Volkswagen CEO, Martin Winterkorn filed its resignation shortly after the news surfaced to the public. Besides, this is not the first time a similar incident occurs as Volkswagen received a lawsuit from the Justice Department of the United States on previous occasions. The lawsuit claimed the automaker company giant would have to pay $48 billion for not complying to emission controls stated in the Clean Air Act, resulting in millions of vehicles along the U.S. and Europe releasing an unforeseen amount of emissions.
The price of the scandal
It is known that Volkswagen itself has admitted to insert illegal software on its diesel vehicles, so when they are being tested, the computer inside the car would adjust the performance of the engine so it could match the emissions set by current regulations.
Customers are set to receive a compensation of $5,000 as it was stated on a settlement signed by the car company. If a fix is approved by U.S. regulators, customers are also eligible for a engine modification free of charge, so the car is able to comply with the current emission regulations. Volkswagen is also reportedly going to buy back at least 500,000 2.0 liter diesel vehicles at market value in order to try and settle legal implications.
The vehicles available for buy-back procedures from Volkswagen are mostly some instances of the Golf compact, Audi A3 and Jetta sedan, but the settlement will not include larger vehicles under such as Porshe and Audi SUVs.
The U.S. is to take legal and concrete actions to remove the polluting vehicles off the road. A measure was already established where Volkswagen is expected to buy back the vehicles or providing free fixes so the cars are allowed to function. These proposals were released back in March, but they are to meet its deadline on Thursday. Volkswagen is not exempt of criminal investigation, as civil lawsuits are yet to be examined and put into order to deal with the irresponsible actions of the German automaker.