DUBLIN, April 21, 2016 /PRNewswire/ --
Volkswagen is close to reaching an agreement with United States' officials to buy back almost 500,000 2.0-litre diesel cars. The deal, if completed, will include fines from regulators and compensation for owners. It is likely to be announced during a federal court hearing in San Francisco later today.
In September, the company confessed to cheating on emission tests for an estimated 11 million vehicles worldwide. This was unfortunate timing for VW, with many US states cracking down on emissions in an attempt to reduce the use of conventional fuels. They are providing incentives to consumers that buy vehicles that run on alternative fuels, and the low emission vehicle market is expected to grow at 5.13% by 2019.
VW will pay cash compensation to owners who sell their vehicles back or get them fixed. Owners are expected to get an additional cash payment on top of the estimated value of their vehicles before the emission scandal became public. Some reports have suggested that the deal to settle could involve paying each affected customer $5,000.
Vehicle emissions and low operating and manufacturing cost are causing American automakers to turn to electric vehicles. The high performance EV market in the United States is projected to grow at a CAGR of 42.34% by 2020. Emission regulations has also led to considerable growth in the exhaust aftertreatment systems market, which is expected to reach 206,430.46 thousand units by 2020.
Owners are expected to have around two years to decide whether to sell back vehicles or have them repaired.
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