Report: Volkswagen agrees to pay $14.7 billion to settle U.S. diesel scandal claims


Volkswagen has agreed to pay almost $15 billion to settle lawsuits in the United States stemming from its rigging of diesel emission tests beginning in 2009, sources told Bloomberg.
Under the settlement, which will be filed Tuesday in San Francisco, the automaker will pay $2.7 billion in fines to the U.S. Environmental Protecting Agency and the California Air Resources Board and spend $2 billion on clean-emissions technology, plus set aside $10.03 billion to buy back cars from customers at pre-scandal values and to give owners as much as $10,000 per car for their trouble.
The vehicles were emitting more pollutants than allowed under U.S. and California law, and if the deal is approved by a judge, car owners will have to either surrender their vehicles or agree to have them fixed to meet emissions standards. Volkswagen is still facing criminal and civil actions in other jurisdictions, and a source told Bloomberg the company is expected to settle claims with other states, including New York, for about $400 million.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
-
Will divisions over trans issue derail Keir Starmer's government?
Today's Big Question Rebellion is brewing following the Supreme Court's ruling that a woman is defined by biological sex under equality law
By Sorcha Bradley, The Week UK
-
Why UK scientists are trying to dim the Sun
In The Spotlight The UK has funded controversial geoengineering techniques that could prove helpful in slowing climate change
By Abby Wilson
-
Gandhi arrests: Narendra Modi's 'vendetta' against India's opposition
The Explainer Another episode threatens to spark uproar in the Indian PM's long-running battle against the country's first family
By Harriet Marsden, The Week UK
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
By Peter Weber, The Week US
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
By Justin Klawans, The Week US
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
By Peter Weber, The Week US
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
By Peter Weber, The Week US
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
By Peter Weber, The Week US
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US