Red Bank Police await Volkswagen settlement results
Volkswagen owners are anxiously awaiting the results of a settlement in which the manufacturer aims to make amends for tampering with the cars' emissions devices.
Volkswagen owners are anxiously awaiting the results of a settlement in which the manufacturer aims to make amends for tampering with the cars' emissions devices. Among those are city officials in Red Bank, whose police department was among the first in the nation to adopt the Chattanooga-made Passat for its entire fleet.
As Volkswagen announces plans for the costliest automaker settlement ever, hundreds of thousands of VW owners await their next move.
The company will pay out $14.7 billion to settle claims over its diesel cars,including buybacks, repairs, payments to car owners and fines. Among those in line for some settlement cash is the Red Bank Police department. Chief Tim Christol says determining the course of action could be complicated.
Chief Christol said, "These are not ordinary cars. They have police equipment beyond the value of an ordinary car. All of this will have to be taken into account."
Car owners will be able to choose if they want to sell their car back to Volkswagen, or have it repaired and accept a cash payment. The deadline is May 2018. Between now and then, Red Bank must decide whether to replace, or repair.
Chief Christol said, "We'll have to see whether it's going to be more efficient to fix the environmental equipment, or take the cash buyout, and purchase new vehicles out of that."
Volkswagen expects to pay between $12,000 and $44,000 to buy back each car. Final approval on the settlement isn't expected until this fall. Until then, the company says it will contact owners like Red Bank Police, and explain their options. Chief Christol says his town will do what's best for taxpayers.
In addition to the buybacks and repairs, Volkswagen must also pay $2.7 billion in fines, and another $2 billion in clean emissions technology.