VW to pay each U.S. customer $5,000 to settle dieselgate: Die Welt

Wed Apr 20, 2016 2:28pm EDT
 
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By Andreas Cremer

BERLIN (Reuters) - Volkswagen has reached a deal with U.S. authorities to settle the case over its cheating of diesel emissions tests that would involve it paying each affected customer $5,000, Germany's Die Welt newspaper reported on Wednesday.

Citing unidentified sources close to the negotiations, Die Welt said the agreement would be presented on Thursday to Judge Charles Breyer in San Francisco, avoiding a trial.

Volkswagen (VW) declined to comment.

Earlier on Wednesday, the possibility of a settlement had boosted the carmaker's shares by 6.6 percent, the biggest gain in Germany's benchmark DAX index.

A U.S. federal judge last month gave VW and regulators until Thursday to agree on a fix for nearly 600,000 diesel cars on U.S. roads implicated by VW's emissions test-rigging scandal.

The company does "not believe any expedited hearing or bench trial is appropriate or required", according to the agenda for the hearing on Thursday at the San Francisco district court about VW's progress toward reaching a deal with the U.S. Environmental Protection Agency (EPA).

The plaintiffs - a committee representing thousands of consumers who say they were tricked into buying polluting diesel vehicles - proposed an expedited hearing or bench trial, or an expedited "all issues" trial including punitive damages.

Die Welt said the agreement did not include a detailed plan to fix the affected cars, nor were details fixed on fines and other compensation measures, with one source saying the deal would be fleshed out in the coming months.   Continued...

 
A logo of Volkswagen is pictured on the wall at the 86th International Motor Show in Geneva, Switzerland, March 1, 2016.  REUTERS/Denis Balibouse