It’s the scandal known as Dieselgate and Volkswagen has now reached a settlement with the EPA. Under the settlement, Volkswagen will fix, buy back, or compensate owners of nearly half a million vehicles in the U.S. But big questions remain.
“I think the brand has been severely tarnished.” said University of Denver business professor Dan Sweeney.
Financial details of the settlement are still being finalized, but sources close to the case say some owners affected by the emissions scandal may receive $5,000 in cash compensation.
“They’re smart enough to negotiate in a way that it would protect their long term survivability.” said Sweeney. “They keep saying they want to win back the trust of the customer. Well, they’ve got a long haul, a very long haul to do that.”
Analysts say the settlement is just the start of rebuilding. Kelly Blue Book estimates the cost to buy back all of the cars affected by the scandal would total more than $7 billion.