"Volkswagen agreed to pay out $10.2 billion to settle a lawsuit
brought by the federal government for cheating on emissions tests. The
settlement will compensate owners of 482,000 vehicles with two-liter
diesel engines that were programmed to turn off emissions measurement
data outside of laboratory settings. The automaker will pay owners
between $1,000 and $7,000 per vehicle and promised to fix the cars
free of charge. (Jacob Bogage)"
How are they spending so much, or why are owners getting so little, if
there is 10 billion to be paid out and half a million cars?
From those numbers, I get 20 billion to 1 million meaning 20,000
average payment. Do they expect 70 or 85% administrative costs? Or
are they only going to pay out 2 or 3 billion and then say they are
done? Or are they going to pay many of themselves 100's of millions
each in bonuses because they suffer stress when they are sued?
I think this refers to the US federal govenment. Also sued for $3.7
billion by investors around the world.
And Norway's state pension fund was a big investor ($1.2 billion) and
I think they are filing their own suit.
But the one quoted above is the only one I've found for car owners,
Good point. The US is entitled to some, part as a fine for violating
the law, and part to compensate everyone for the polluted air everyone
had to breathe, though I'm not sure what they would do with the money,
pay for research on how to treat people with lung diseases, subsidize
some air cleaning projects. It doesn't seem like all of that together
should be 70 to 85% of the total. but maybe Trader is right about
money for buying back the cars. I don't really think that would
account for the difference.
VW will need to engineer a solution. To do that, they'll need to build a new "Michael Horn Engineering and Technology Center".
Obviously, the new MHETC will need to be equipped with the latest and greatest engineering and testing labs.
This new MHETC will cost 5 billion.
VW will distribute 5 billion in bonuses to the upper echelon executives for a job well done.
The remaining 200 million will be used to distribute a software update to the effected cars.
On Sunday, June 26, 2016 at 8:42:11 AM UTC-4, Frank wrote:
And AFAIK the details haven't been make public. VW will have to buy back
some of the cars. It's not clear if the $1K to $7K to owners includes
that, I suspect it doesn't, ie whatever cars they buyback is on top of
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