On September 18th, 2015, the United States Environmental Protection Agency found that Volkswagen bypassed the Clean Air Act. The automaker installed engine control units in an inappropriate way. Two years afterward, the emissions scandal is still unraveling its large array of consequences. The company has to cover a settlement to a total of 10 states, including Washington. This is the first time these states managed to demand prejudices according to the Clean Air Standards legally.
The Infringement of Clean Air Standards Demands $157 Million Settlement
On Thursday, Volkswagen managed to solve another hurdle of its 2015 emissions scandal. The German automaker agreed on its settlement with 10 American states, leaving behind another series of lawsuits. Thus, the company is going to cover prejudices amounted to $157 million. The multi-million funds will go to Oregon, New York, Connecticut, Massachusetts, Maine, Pennsylvania, Delaware, Vermont, Rhode Island, and Washington. All these regions adopted the Californian clean air standards.
This settlement is not the same one with a 2016 agreement that was made with a total of 44 states for $603 million. Last year, the lawsuit involved products with 2-liter engines. This time, the settlement regarded vehicles with diesel engines with six cylinders and a capacity of three liters.
The Case Will be Used as Precedent in Future Federal Lawsuits
Eric Schneiderman, the New York Attorney General, stated that this victory marks the first time when the ten states above received penalties according to their own emissions laws. This is not just a one-time case. This settlement will mark a historical precedent. Experts are sure that this case will prove to be an unfailing pillar in the future federal endeavors. This is because the President of the United States expects fund cuts for environmental enforcements, leaving California and New York alone in their fight against infringements of clean air standards.
Since the outbreak of its 2015 emissions scandal, Volkswagen had to cover a total of $20 billion expenses. These costs went to car repairments, bought back vehicles, and a series of lawsuits and civil fines related to the environmental impact of its products. The silver lining in all these clouds is that EPA allowed the company to put on the market a series of cars with 2015 model diesel engines. These proved to have everything in order according to the clean air standards.
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