S.Korea issues arrest warrant for VW exec in emissions probe

A Volkswagen shareholder using a walking stick carries a bag at the annual shareholder meeting in Hanover Germany on June 22. The German auto giant Volkswagen issued an apology to angry shareholders over the emissions cheating scandal that has plunged

Reuters reported last week the initial VW settlement would not include civil penalties under the US Clean Air Act or address about 80,000 larger 3.0 liter Audi, Porsche and VW vehicles that emitted less pollution than 2.0 liter vehicles.

Image: Volkswagen to pay $10bn in compensation in U.S. to car-owners.

In November a year ago, Seoul ordered Volkswagen Korea to recall more than 125,000 diesel-powered cars sold in the South Korean market and fined the firm 14.1 billion won (USD 12.3 million). Owners will also get $1,000 to $7,000 in cash (an average of $5,000) depending on the age of the vehicle and other factors. It also misled the EPA, which had started asking questions in 2014.

The warrant is the first to be levelled against a Volkswagen executive anywhere in the world after the firm in September admitted to using software to falsify pollution tests on some diesel cars, spurring legal action in the United States, Germany, South Korea and elsewhere.

Charges include manipulating documents on emissions tests to get approval for selling Volkswagen vehicles in the country.

The US$10.2 billion would exceed the cost of all recent automotive scandals and the amount Volkswagen ultimately pays out could grow by billions of dollars.

Not only in the US, Volkswagen later admitted to have used the same software in over 11 million cars worldwide for its passenger auto brands Volkswagen, Porsche, and Audi as well.

He added that the settlement deal will enable the automaker to come out of the elongated emissions scandal and will also prove to be a setback for the efforts being made by the automaker to establish itself as a major player in North America. “Owners would also receive the compensation if they choose to have the vehicles repaired, assuming US regulators approve a fix at a later date”, according to a news report published by Reuters. The settlement is complex, requiring owners to fill out detailed worksheets about their vehicle to calculate the buyback value.

The German automaker has agreed to pony up $10 billion to cover government fines and settle claims with the owners of VW vehicles that were fitted with software that cheated emissions standards, according to MarketWatch. An anonymous source told The New York Times that that all owners of the affected cars will receive an average of $5,000 in compensation, whether they choose to sell their cars to VW (at pre-scandal market price) or opt for the the fix. The vehicle maker will also provide additional cash whether owners choose to sell or keep their cars, the people said.

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