Volkswagen has spent $17.5 billion in the U.S. on emissions cheating, but it's not the end

On December 21, local time, Volkswagen Group agreed to buy back or repair about 80,000 diesel vehicles with excessive emissions for $1 billion in order to get rid of the emissions test cheating scandal as soon as possible. As part of the solution, Volkswagen Group also agreed to promote electric vehicles in California. Volkswagen Group will also face additional high compensation for the complaints of owners of Volkswagen diesel vehicles that exceeded the standards.

U.S. Assistant Attorney General John Cruden pointed out that "this agreement represents an important step forward in the Volkswagen cheating case, but it is not the final step." Cruden declined to comment on whether the administration would reach an agreement with Volkswagen before Obama leaves office.

Buy back, repair and promote electric vehicles, but there are still problems to be solved

Volkswagen has reached an agreement with the U.S. Department of Justice, EPA and California officials on the buyback and repair of diesel vehicles. At a hearing in San Francisco, U.S. District Judge Charles Breyer announced the agreement. Judge Breyer said that American Volkswagen 3.0-liter diesel car owners can repair their vehicles and receive a large amount of compensation. In addition, Breyer also said that there are still issues that need to be resolved and another hearing will be held on December 22 local time.

Hinrich Woebcken, CEO of Volkswagen Group of America, said in a statement that the agreement with federal and California regulators "is another example of our efforts to get our customers back on track."

Under the new agreement, Volkswagen will buy back about 20,000 3.0 diesel vehicles and repair another 60,000 diesel vehicles. The repurchased vehicles include Volkswagen Touareg and Audi Q7 diesel models, a total of about 20,000 vehicles. If Volkswagen is required to buy back all vehicles with excessive emissions, its company costs will increase by billions of dollars again. However, for the repair, Volkswagen Group still needs to obtain the consent of US regulators and still needs the final consent of Judge Breyer.

Richard Corey, CEO of the California Air Resources Board, said cheaters will be brought to justice and held accountable for their actions.

In a separate court filing, California said VW agreed to add at least three electric vehicles, including an SUV, to its California lineup by 2020, with annual sales of the new electric vehicles averaging 5,000.

In September 2015, Volkswagen admitted that it had configured cheating software in vehicles that passed U.S. diesel emissions tests, making emissions much lower than the actual emissions. The incident involved 475,000 2.0-liter diesel vehicles. In fact, the emissions of these diesel vehicles could be up to 40 times the emission standards. Subsequently, Volkswagen admitted that it also used cheating software in some 3.0-liter diesel vehicles. A total of 80,000 3.0-liter diesel vehicles under the Volkswagen Group were configured with cheating software, and the actual emissions could be up to 9 times the U.S. emission standards.

The Volkswagen Group's 3.0-liter diesel vehicles that exceeded the emission standards include Volkswagen, Audi and Porsche. In October this year, Breyer approved Volkswagen's solution for 475,000 2.0-liter diesel vehicles. Volkswagen agreed to settle the complaints of regulators and American car owners for $15 billion, and also took the initiative to buy back all vehicles.

So far, Volkswagen has agreed to pay up to $17.5 billion in compensation in the United States to settle complaints from U.S. diesel car owners and the U.S. government. Despite this, Volkswagen is still likely to pay billions of dollars for criminal charges from the U.S. Department of Justice and complaints from environmental organizations.

The cheating scandal had a huge negative impact on Volkswagen's global business and its reputation, and former Volkswagen CEO Martin Winterkorn resigned as a result.

On December 19, Volkswagen Group agreed to buy back 105,000 2.0-liter diesel vehicles in Canada that exceeded emission standards for C$1.6 billion.

Bosch expresses full cooperation

On December 20, local time, Breyer said that German auto parts supplier Bosch had become the manufacturer of cheating software for Volkswagen diesel vehicles and had agreed in principle to resolve the allegations made by American Volkswagen diesel car owners.

In a statement, Bosch said vaguely, "Throughout the negotiation process, Bosch did not admit the facts alleged by the plaintiff, nor did it accept any responsibility. After considering all aspects of the case, Bosch decided to agree in principle to the agreement announced by the judge today." However, Bosch did not disclose the specific terms of the agreement. According to a Reuters report on December 19, Bosch may pay $300 million in compensation.

"The agreement in principle only concerns private claims. As Bosch has actively cooperated from the outset, it will continue to fully cooperate with the investigation authorities in Germany or other countries."

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.