There are approximately 600,000 Volkswagen diesel owners in the US and the company has plans to offer generous compensation packages to them., according to an interview published in the German newspaper Frankfurter Allgemeine Sonntagszeitung. Although the company has yet to disclose if their compensation package would include cash, repairs, replacement vehicles, or car buy-backs.
Kevin Feinberg, head of claims at Volkswagen, stated that he would not make his goal of settling claims within 90 days, he says that his hands are tied as he waits for Volkswagen executives to decide what kind of compensation package they would like to offer. The problem appears to be that no one at the company can agree on what the exact price of their emissions scandal should be.
It has been slightly more than 4 months since this scandal broke and the company still has no approval for an appropriate “fix” for these vehicles. However, Feinberg states that after the compensation package is decided on, he fully expects almost everyone to accept Volkswagen’s generous offer. Feinberg has also worked on settling claims for 9/11 and the BP oil spill. He said in the interview that he had received many emails from diesel car owners which state that they realize that, unlike 9/11, they had not lost a family member, but they did have a car with a problem and they expected to be treated fairly.
The uncertainty about the cost of whatever compensation package Volkswagen eventually offers has led to some dramatically lower stock prices. Since the start of 2016, the company has seen stock prices plunge 26%.
Regulators in America rejected Volkswagen’s original plan of fixing all 2.0 liter diesel cars. A deliberate software code enabled cars to hide their true emission output. The company has already assured owners in the US that they intend to offer packages of “no less than $1,000” and the European Commission is urging the German automaker to do the same with car owners in Europe.
Volkswagen has set aside $7.5 billion to in late 2015 to help cover costs for vehicles worldwide but this might need to be increased by another $3, possibly $4 billion more.
Source: Reuters
xThere are approximately 600,000 Volkswagen diesel owners in the US and the company has plans to offer generous compensation packages to them., according to an interview published in the German newspaper Frankfurter Allgemeine Sonntagszeitung. Although the company has yet to disclose if their compensation package would include cash, repairs, replacement vehicles, or car buy-backs.
Kevin Feinberg, head of claims at Volkswagen, stated that he would not make his goal of settling claims within 90 days, he says that his hands are tied as he waits for Volkswagen executives to decide what kind of compensation package they would like to offer. The problem appears to be that no one at the company can agree on what the exact price of their emissions scandal should be.
It has been slightly more than 4 months since this scandal broke and the company still has no approval for an appropriate “fix” for these vehicles. However, Feinberg states that after the compensation package is decided on, he fully expects almost everyone to accept Volkswagen’s generous offer. Feinberg has also worked on settling claims for 9/11 and the BP oil spill. He said in the interview that he had received many emails from diesel car owners which state that they realize that, unlike 9/11, they had not lost a family member, but they did have a car with a problem and they expected to be treated fairly.
History
The uncertainty about the cost of whatever compensation package Volkswagen eventually offers has led to some dramatically lower stock prices. Since the start of 2016, the company has seen stock prices plunge 26%.
Regulators in America rejected Volkswagen’s original plan of fixing all 2.0 liter diesel cars. A deliberate software code enabled cars to hide their true emission output. The company has already assured owners in the US that they intend to offer packages of “no less than $1,000” and the European Commission is urging the German automaker to do the same with car owners in Europe.
Volkswagen has set aside $7.5 billion to in late 2015 to help cover costs for vehicles worldwide but this might need to be increased by another $3, possibly $4 billion more.
Source: Reuters
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