VW is reportedly going to pay customers up to $7,000 each to end a scandal

Thomson Reuters

Volkswagen Group's nine-month-long emissions scandal may be coming to a close.

Sources familiar with the negotiations claim that VW Group has agreed to pay $10.2 billion to settle claims in the US, according to Bloomberg. 

In addition, the source indicated that owners of the more than 480,000 affected cars would each receive $1,000 to $7,000,  with an average payout of $5,000.

Further, a portion of the settlement will also be paid to the US government in the form of fines. 

VW declined to comment on the matter.

However, a source cautioned the AP that the terms of the agreement may be subject to revision before it is released by the court next Tuesday. 

According to the US Environmental Protection Agency: Cars with Volkswagen's 2-liter TDI turbo-diesel four-cylinder engines features software that detects when the car is undergoing emissions testing and turns on a suite of pollution-control systems.

But as soon as the test ends, the controls switch off, leaving the engine free to emit up to 40 times the legal limit of nitrogen oxide, a highly polluting gas. According to the California Air Resources Board, Volkswagen admitted to using a defeat device during a September 3 meeting with the agency and the EPA.

In September, the California Air Resources Board and the EPA both issued notices of violation to Volkswagen Group concerning nearly 500,000 2.0-liter TDI diesel-powered vehicles sold in the US from 2009 and 2015.

The scandal eventually spread around the world - affecting more than 11 million cars. The scandal — dubbed "dieselgate"— led to the dismissal of VW CEO Martin Winterkorn, as well as several high-ranking engineers. 

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