VW’s TDI emissions penalties grow by $86M in California

Volkswagen A.G.is set to escape fines from the German Transport Ministry after cheating on emissions tests for years, despite growing public ire over the lack of compensation for European owners of tainted vehicles.

The manager of the local Volkswagen dealership says it will be a while until the company knows just what it means.

California Attorney General Kamala Harris on Thursday said Volkswagen AGVLKAY -1.57 % would pay an additional $86 million in civil penalties as part of a second partial settlement with the state.

Meanwhile, Bild, Germany’s most-read newspaper, took Volkswagen to task for failing to compensate the 2.4 million affected owners in its home country amid growing discontent after CEO Matthias Mueller rejected compensation in Europe.

The technologies included in vehicles after 2010 were designed to create fewer harmful emissions and replacing older vehicles is the fastest way to significantly reduce emissions, according to DTF. “This additional settlement sends an unequivocal message to Volkswagen and any other automaker that California will aggressively enforce our robust consumer and environmental protection laws”.

Volkswagen will also pay $20 million to the states for their costs in investigating this matter and to establish a fund that state attorneys general can utilize for future training and initiatives, including investigations concerning emissions violations, automobile compliance, and consumer protection.

The company may still face criminal charges as a result of an ongoing investigation, and the current settlement doesn’t include any settlement related to vehicles with a 3.0-liter diesel V6 engine produced by the company. In particular, the sales of Volkswagen decreased 33.1% compared to the same period of a year ago, influencing heavily on the total decrease of the imported cars.

“New Volkswagen vehicles on sale in Australia – petrol and diesel – continue easily to meet the prevailing Euro 5 standard for emissions”. Under the settlements, Volkswagen is required to implement a restitution and recall program for more than 2,000 vehicles in Nebraska.

The consumer program also provides benefits and restitution for lessees (restitution and a no-penalty lease termination option).

If all affected cars purchased in North Carolina remain in the state and eligible, consumers here would get approximately $90 million in cash back from Volkswagen through the settlement, in addition to the other relief.