Costs rise as VW compensation claims spread

July 20, 2016

Volkswagen Group is facing calls to extend its $15 billion dollar US compensation scheme for drivers affected by the Dieselgate scandal to Canada.

If a deal is agreed, it is likely to intensify calls for European drivers to receive a similar offer.

In the US, around 500,000 drivers were offered buyback deals and compensation after their vehicles were found to be fitted with defeat devices that cheat emissions tests.

Extending the scheme to around 100,000 Canadian drivers could cost Volkswagen an additional $2 billion, according to Frankfurter Allgemeine Zeitung.

No compensation has been offered to drivers in Europe because Volkswagen has been able to identify a fix for cars through a recall, but the firm has also warned that any financial agreement for 8 million drivers affected by the emissions crisis would be ‘overwhelming’. Autovista Intelligence analysts estimate the potential bill would reach more than €60 billion.

The compensation does not include the cost of fines from the countries involved in civil claims made against the company, which could add hundreds of millions of Euros to the final bill for the scandal.

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