Volkswagen to Offer Compensation for Affected Car Owners

Not too long ago, car manufacturer Volkswagen found itself in the middle of a diesel scandal which has tarnished the reputation of the company. In addition to that, it has sparked an outrage over its customers and those who were working hard at keeping the environment clean and safe. The latest over the diesel scandal is that the German car maker is said to offer a generous compensation package to car owners affected by the issue.

Volkswagen has hired attorney Kenneth Feinberg to oversee the claims process of vehicle owners affected by the diesel scandal. Even though Feinberg has confirmed the news about car owners receiving compensation, it is still unclear as to whether this will be in form of cash, repairs, replacement vehicles, or buy-backs. Despite this, Feinberg believes that a majority of these car owners will accept the compensation offer that the car manufacturer will be offering. While this has already been announced, Feinberg tells Reuters that Volkswagen and the authorities still have not "overcome their differences."

Despite having his hands tied up at the moment, Volkswagen has granted the attorney full authority to make decisions on the compensation. Having prior experience as the head of claims fund during GM's ignition switch recall gives Volkswagen the confidence that Feinberg will be able to execute this fairly. Not to mention, the attorney also handled the fund for victims of 9/11 terrorist attacks which led to a 97 percent acceptance rate.

Last month, regulators in the US rejected the car maker's original plan of fixing its diesel engines. This was because it raised concerns that Volkswagen would have to buy back a few of these vehicles. From their Q3 2015 earnings, the car maker has already set aside $7.5 billion to use for repair costs for the affected vehicles from the scandal.

Tags

Volkswagen, Diesel Scandal, Kenneth Feinberg

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