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Lawsuit and compensation fees add to Volkswagen's US emissions woes

Volkswagen tower

Volkswagen is once again feeling the force of the US backlash to its emissions deception this week, with a $15 billion lawsuit filed and a possible $1 billion in compensation deal for customers.

The Federal Trade Commission filed a lawsuit on Tuesday demanding the repayment of the German manufacturer’s “ill-gotten monies”.

The FT reported that the FTC claims that Volkswagen deliberately deceived US consumers over a seven-year period with advertising campaigns which promoted “clean diesel”.

A decision is expected in Federal Court today over how Volkswagen will manage the NOx emissions scandal in the US.

Reports suggest that a compensation package of over $1 million, for the owners of 600,000 cars, is likely to be tabled at the hearing.

Speaking to The Guardian newspaper, a source said that a fix for the emissions issue – which sees up to 40 times more NOx emitted by vehicles than legislation allows – has not yet been found.

The article stated that some owners would get a choice of having VW repair their cars or buy them back, but that would vary by model year and engine type.

Volkswagen has so far set aside £5.1 billion to help meet the costs of recalls, financial penalties and compensation in the US.

UBS analysts told the FT that the scandal could end up costing Volkswagen around £30 million, however.

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