Volkswagen Reaches Settlement with US Government
After undergoing investigations and being hit with hundreds of defective product lawsuits, German automotive company Volkswagen has reached a settlement agreement with the United States government. While the settlement is not likely to affect the many civil suits already under way, it does point a way forward for people with affected vehicles to gain some compensation.
The scandal erupted when Volkswagen admitted that it had installed a software program in recent diesel models that detected when an emissions test was taking place, and reduced engine power (and emissions) accordingly. Once the test was over, the engine would begin functioning as normal, bringing emissions levels above the acceptable legal limits.
When news got out, this left hundreds of thousands of car owners with cars that were in violation of emissions law and therefore practically valueless.
The terms Volkswagen has tentatively reached with US lawmakers allows owners of the affected cars to receive some of the value they have lost. The automaker has the option of repairing or buying back any cars affected by their deliberately misleading emissions-adjustment software. This way, people who own the cars can either get the issue fixed, or receive financial compensation that allows them to buy another car.
This settlement only affects diesel cars with 2-liter, 4-cylinder engines.
If you think you have a car that may be affected by this settlement, contact the Charleston defective product attorneys at the Steinberg Law Firm today. Steinberg Law Firm offers a free initial case review to all new clients. To contact us, call 843-720-2800.