Some 820 Volkswagen owners in Hawaii will be eligible to receive a payment of at least $5,100 and a choice of a buyback or a modification to their vehicle as part of a $15.3 billion national settlement with the automaker.
Hawaii Attorney General Doug Chin and Office of Consumer Protection Executive Director Stephen Levins said Volkswagen has agreed to pay more than $570 million for violating states’ laws by marketing, selling and leasing diesel vehicles equipped with illegal software to cheat on vehicle emissions tests.
Chin said owners of the vehicles should be getting a notice from the court about the settlement. Levins said depending on the market value of the vehicle, owners could see up to $10,000 in restitution payments. People who have leases on affected vehicles can terminate a lease early without penalty.
Models covered by the settlement include the 2009-2015 Jetta and Audi A3, the 2010-2015 Golf and the 2012-2015 Beetle and Passat, all with 2-liter diesel engines.
If the settlement is approved, owners who choose to have Volkswagen buy back their cars would get the National Automobile Dealers Association clean trade-in value from before the scandal became public Sept. 18. That would be $12,500 to $44,000, depending on the model, age, mileage and options on their car, the Justice Department said in a statement.
Owners can also have Volkswagen repair the cars for free — assuming it comes up with a fix. According to court documents filed Tuesday, there currently is no repair to bring the cars into compliance with U.S. pollution regulations. When Volkswagen eventually proposes a repair, it must be approved by the Environmental Protection Agency and the California Air Resources Board. VW has to submit proposed fixes to the EPA between November and October 2017.
To see the details of the consumer compensation, vehicle owners can enter their VIN number at VWCourtSettlement.com and ftc.gov/VWSettlement.
The automaker will pay an additional $10 million to the state of Hawaii in civil penalties that have to do with unfair and deceptive practices.
Broken down, Volkswagen agreed to pay $2.5 million to the state Department of Commerce and Consumer Affairs and $7.5 million to an environmental mitigation fund, which will go to the state Department of Health.
“(Volkswagen) just engaged in the most egregious and outrageous conduct, and they are paying for it now,” Levin said. “Not only did they lie to consumers and lie to regulators and lie to their dealerships, but they contributed to pollution on a huge scale.”
Hawaii’s agreement is part of a series of state and federal settlements announced Tuesday.
The settlements still must be approved by U.S. District Judge Charles Breyer, who has set a hearing for preliminary approval on July 26. Final approval is expected in October.
The settlement also includes $2.7 billion for environmental mitigation and another $2 billion for research on zero-emissions vehicles.
The German automaker settled claims with 44 states, Washington, D.C., and Puerto Rico for about $603 million. It still faces billions more in fines and penalties as well as possible criminal charges.
Volkswagen has admitted that the cars, equipped with 2-liter diesel engines, were programmed to turn on emissions controls during government lab tests and turn them off while on the road. Investigators determined that the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems in humans. The company got away with the scheme for seven years until independent researchers discovered the scheme and reported Volkswagen to the EPA.
Volkswagen also will pay off customers’ loans if they owe more than their car is worth due to rapid depreciation. Owners will have the option of having Volkswagen retire loans up to 130 percent of the cars’ value before the scandal.
Owners can still decline Volkswagen’s offer and sue the company on their own.
Lawyers are still working on settlements for another 80,000 vehicles with 3-liter diesel engines.
Volkswagen says the $10 billion consumer settlement assumes that it will buy back all of the cars.
“We take our commitment to make things right very seriously and believe these agreements are a significant step forward,” Volkswagen AG CEO Matthias Mueller said in a statement.
VW said in April that it had set aside $18.2 billion to cover the cost of the global scandal, which includes 11 million vehicles worldwide. The scandal has hurt VW-brand sales in the U.S. In the first five months of 2015, before the scandal, Volkswagen sold 144,006 cars in the U.S. In the first five months of this year, the total fell 13 percent to 125,205.
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The Associated Press contributed to this story.