VW Facing $15bn US Emissions Settlement

A court in the US is today expected to be given details of an emissions scandal settlement that will cost Volkswagen (LSE: 0P6N.L - news) almost $15bn (£11bn).

News (Other OTC: NWSAL - news) agencies reported that the owners of 482,000 2.0 litre diesel cars fitted with software to cheat testing regimes would benefit most from the financial deal.

It would be the largest sum paid out in an auto scandal in US history.

Sources said owners could either choose to either sell their car back to the company or get a repair - though that option would harm the vehicle's performance.

Each owner would also pick up compensation of between $5,000 and $10,000 - with time of purchase and the model bought among factors determining the scale of the payment.

In addition to the estimated $10bn cost of covering the scheme , VW was to pay $2.7bn for environmental mitigation and another $2bn for research on zero-emissions technology, a source told AP.

The settlement still requires a judge's approval before it can go into effect. The terms will be outlined in a San Francisco court later on Tuesday.

It is understood that, under the deal, owners can choose to go it alone and take their own case to court if they are unhappy.

Some have raised fears that by choosing a fix, VW will refuse to buy back cars if performance is too badly affected.

VW is still facing billions more in fines and penalties in the US - including potential criminal charges - and a class action from owners of 3.0 litre diesel cars.

The company has admitted there are 11 million vehicles fitted with the cheating software worldwide. It is under pressure to agree compensation for drivers elsewhere - including the UK.

It has set aside $18.4bn to cover the cost of the scandal to date.