A German paper is reporting that the auto manufacturer, Volkswagen, will be providing some hefty compensation to approximately 600,000 diesel vehicles owners in the United States, who purchased cars that had emissions over the legal limit.
Kenneth Feinberg, the head of VW’s claims states that the company is still determining whether or not this compensation will take the form of cash, repairs, car buy-backs, or replacement cars.
On Valentine’s Day, the company delayed its 2015 results publication and annual shareholders’ meeting, as it battles to place a precise price tag on their emissions controversy.
Over four months since the scandal hit in the U.S., the leading auto maker in Europe has yet to receive an approval for a fix regarding the cars. VW appointed a new U.S. legal department head last week, to aid with the resolve of this case.
Feinberg noted that is was not likely that he would meet his 60 to 90-day goal of setting up these claims stating that ‘his hands were tied’, as long as the authorities and company had not resolved their differences.
Feinberg adds he expected most to take his eventual offer, and that Volkswagen gave him the authority to set the compensation level. Feinberg also adds that he has not determined whether or not he should place consideration on certain assertions that the emissions scandal may have damaged the health of claimants.
Last month, regulators in the United States rejected the company’s original plan to fix 2.0-liter diesel cars that had software designed to conceal the cars’ true emissions, which has many concerned that Volkswagen may unravel a huge number of expensive buy-backs.
Reuters reports that the company has vowed the distribution of tens of thousands of goodwill packages, estimated at $1,000, to U.S. VW owners. European lawmakers and The European Commission have encouraged the company to think about making the same offer to European VW owners.Advertisement