Volkswagen to pay Texas $50 million in civil penalties

Still, VW has outlined plans to expand its electric vehicle offerings dramatically over the next several years, and investments in charging infrastructure could ultimately help persuade consumers to buy those cars. The settlement also includes $2.7 billion for environmental mitigation and $2 billion for research on zero-emissions technology. The German automaker also settled claims with 44 states, Washington, D.C., and Puerto Rico for about $603 million. The company still faces billions more in fines and penalties.

Attorney General Mark R. Herring announced Tuesday that the commonwealth will receive more than $100 million and qualified Virginia VW owners tens of millions more.

NY will get more than $115 million for environmental projects to improve air quality as part of the state’s share of a multistate settlement with Volkswagen over emissions test cheating.

Volkswagen has admitted that 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. Once the vehicle had achieved approval, the vehicles emitted up to 40 times the legally allowable pollution limit.

While the state settled civil penalties, Texas is still pursuing claims the company violated environmental protection laws.

The company’s US headquarters is in Herndon, Virginia.

Under the nationwide agreement, drivers who have owned or leased VW or Audi 2.0-liter diesel vehicles at least since September 28 of previous year will be eligible for compensation from the automaker.

VW has rejected such calls, saying auto owners in Europe will not suffer a loss of value in their cars as VW is implementing steps approved by regulators to remove the illicit software from the vehicles in a campaign that so far has involved about 3.7 million of 8.5 million affected vehicles in the region.

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.

Volkswagen’s official website also announced that the settlement would cover the company’s lapses as they announced their cars are clean amidst the fact that it runs on diesel.

There’s no fix that can make those cars comply with USA pollution regulations, and the deal gives their owners the option of a buyback.

The coordinated settlements also resolve actions against Volkswagen brought by the United States Environmental Protection Agency (EPA) and Department of Justice (DOJ), the Federal Trade Commission (FTC), California and vehicle owners in private class action lawsuits. If it cannot come up with a fix, VW could have to buy back most of the vehicles.