Michigan government uses VW compensation to promote ZEV development

Michigan government uses VW compensation to promote ZEV development

According to foreign media reports, the Michigan government intends to use the compensation funds from Volkswagen Group for the emissions scandal to develop zero-emission vehicles (ZEV). Earlier, Volkswagen Group reached an agreement with the US court to pay $14.7 billion in compensation to the US market due to the emissions scandal.


Last month, the U.S. federal court approved Volkswagen's compensation proposal, requiring Volkswagen to pay $1.2 billion for research on zero-emission vehicles and another $800 million to punish Volkswagen for violating environmental laws. Volkswagen has previously admitted to cheating in emissions tests and violating the U.S. Clean Air Act. U.S. authorities said that when the problematic cars are driven normally, the car's nitrogen oxide emissions are more than 40 times higher than the prescribed limit.
On Monday, the Michigan Energy Agency announced that it would use the $2 billion in compensation from Volkswagen to research zero-emission vehicles in Michigan.
Valerie Brader, administrator of the Michigan Energy Department, said: "Michigan is currently looking for ways to promote zero-emission vehicle research in the hope that this will help mitigate the impact of the Volkswagen emissions incident in Michigan."
In addition, the compensation proposal also proposed that Volkswagen Group pay $10 billion in compensation to recall and repair 475,000 2.0-liter diesel vehicles sold from 2009 to 2015.
According to the agreement, Volkswagen will also compensate car owners with additional compensation costs of $5,100 to $10,000 depending on the age of the car. In addition, Volkswagen will pay $2.7 billion in compensation to the Federal Environmental Mitigation Trust Fund.
The Michigan government's decision to force Volkswagen Group to invest its compensation in electric vehicle development has been criticized by all walks of life in the United States because data from October showed that Americans are more inclined to buy SUVs.

In addition, the local government also said that increasing research funding for zero-emission vehicles will also help Volkswagen expand into the electric vehicle market. And Fred Upton, R-St. Joseph, chairman of the U.S. House Energy and Commerce Committee, said: "If Volkswagen Group does not have a monopoly in the electric vehicle field, it will be possible to obtain substantial competitive benefits under the requirements of the required investment."
The Michigan Energy Agency said on Monday that it will work with some public and private companies to solicit legal rights in the hope of fully promoting the zero-emission vehicle research investment plan. The companies include the Michigan Department of Environmental Quality (DEQ), the Michigan Department of Transportation (MDOT), and the Michigan Economic Development Corporation (MEDC). On November 18, the parties will hold a web conference to reach a consensus on the legality of the investment, budget and other issues.

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.

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