Dieselgate costs VW record $14.7 billion fine

The price of cheating its car emissions tests was today set at $14.7 billion (£12.0 billion) after a US judge approved the record fine for Volkswagen’s rigging scandal.

The world’s second biggest carmaker — which installed software in its vehicles to enable them to cheat at emissions tests — has to spend up to $10 billion buying cars back from owners and compensating them, and $4.7 billion on environmental projects.

VW owners in the US can choose between selling their vehicle back to the German carmaker at pre-scandal value, or having it repaired. They will also receive $5,000 to $10,000 compensation, depending on the car’s age.

Some models were found to have been emitting up to 40 times the legal limit of nitrogen oxide, and owners in the US had appealed for higher compensation, but judges ruled the agreement was “adequate and fair”.

Around 11 million Volkswagen cars were affected worldwide, and the German firm faces fines and lawsuits outside of the US.

VW chief Matthias Mueller yesterday met German transport and digital secretary Dorothee Bär in Berlin as it expanded its IT infrastructure.