USD 15 billion Volkswagen emissions deal faces critical test

A USD 15 billion settlement over Volkswagen's emissions cheating scandal faced a critical test today, with a federal judge deciding whether to grant it preliminary approval.
US District Judge Charles Breyer appeared inclined to support it. He has kept close watch over the negotiations and previously praised the efforts of attorneys and a court-appointed settlement master who helped broker the deal.
Preliminary approval would allow attorneys to notify vehicle owners of the terms, which include a buyback option. Breyer is expected to decide in October whether to grant final approval or tell the sides to keep negotiating.
The German carmaker agreed last month to spend up to USD 10 billion buying back or repairing about 475,000 Volkswagens and Audi diesel cars with 2-liter engines and paying owners USD 5,100 to USD 10,000 each. Details about the vehicle repairs have not been finalized.

The owners could use a settlement website to determine how much compensation they would get. They could object and opt out, allowing them to pursue legal action against Volkswagen on their own.
The settlement also includes USD 2.7 billion for unspecified environmental mitigation and an additional USD 2 billion to promote zero-emissions vehicles. It does not cover about 85,000 more powerful Volkswagens and Audis with 3-liter engines also caught up in the emissions scandal.

Volkswagen has acknowledged that the cars were programmed to turn on emissions controls during government lab tests and turn them off while on the road. Investigators found that the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems.

In January 2015, Volkswagen had announced investment of
30 million euros on Indian specific diesel engine and tooling.
The localisation of 1.5-litre and 2-litre diesel engines is being done in order to be competitive in India, he added.
Spelling out the company's future strategy, Mayer said: "We see ourselves as the most affordable premium German car brand. This definition limits the circle of size. We are never going to compete with those in top three, four or five (in the overall market)."
Stating that VW is not targeting the entry car market with price range of Rs 2-3.5 lakh, he said: "I don't think we will target that in short term.

"In the long term you can never exclude that but I think there are many more priority tasks for us to develop cars that fit to the aspirations of the aspiring middle class in India rather than those ones catering to the rock bottom value, conscious first time car buyer, who looks for best value for his Rs 3 lakh."
When asked for the target for 2017, Mayer said: "We are targeting double digit growth. I am sure we can expect that to happen."
Last year, the company had sold around 47,000 units in India.
The company is looking for a bigger play in the SUV segment in India as it gears up to launch the premium model Tiguan.

In its biggest product offensive in five years, VW is also bringing back sedan Passat this year to add to the newly launched performance-oriented hatchback GTI as it bids to position itself as a full range "accessible premium car brand" in India.