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.