Volkswagen will reportedly pay $10.2 billion to settle claims by nearly 500,000 owners stemming from its U.S. diesel emissions cheating scandal and to fund efforts to offset pollution.
Owners will receive an average of $5,000 in compensation along with the estimated value of the vehicles as of September 2015, before the scandal erupted. Owners would also receive the compensation if they choose to have the vehicles repaired, assuming U.S. regulators approve a fix at a later date.
As part of the settlements, Volkswagen will help to boost zero emissions vehicles and introduce a program to offset excess diesel pollution from the offending vehicles.
In September, VW disclosed that it had used sophisticated software to evade emissions requirements in nearly 11 million vehicles worldwide. It also misled the EPA, which had started asking questions in 2014. The company’s chief executive officer, Martin Winterkorn, resigned in the wake of the scandal.