Volkswagen has agreed to pay vehicle owners for the emissions scandal it got embroiled in. The company will be paying US$1.2 billion to owners of diesel vehicles.

Volkswagen emissions scandal. The German car manufacturer has agreed to pay owners of diesel vehicles US$1.2 billion as a settlement for claims that the company had rigged them to cheat on emissions tests. However, if VW fails to repair the vehicles in ways that satisfy US regulators, the company would have to chalk up an additional US$4.0 billion.

The settlement from the car manufacturer was filed on Tuesday before Judge Charles R. Breyer in a US District Court in San Francisco. The settlement covers owners of over 78,000 VW, Audi, and Porsche vehicles. VW had earlier agreed to a US$15.0 billion settlement that covers owners of around 500,000 2.0-liter diesel engine Volkswagen and Audi vehicles.

Around 58,000 owners of newer car models from years 2013 to 2016 that can still be made to comply with US pollution limits will receive a compensation of US$7,039 to US$16,114. Attorneys of these owners will seek buybacks if the German car manufacturer fails to fix the vehicles to the satisfaction of US regulators.

On the same day the car company agreed to pay victims of the emissions scandal, German electronics company Bosch also announced a US$327.5 million settlement for owners of 3.0-liter diesel-powered VW, Audi, and Porsche vehicles. Bosch has been accused of being behind the modification of car software that allowed vehicles to pass emissions tests.

The accusation explains that the Volkswagen, as a car manufacturer, did not have the knowledge and capability to modify software to deceive emissions testing equipment. Bosch, however, has not admitted to any wrongdoing after announcing the settlement. When approached for comment, Bosch CEO Volkmar Denner said that the electronics company decided to settle so it could go back to focusing on its business.

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