Volkswagen to pay $15 billion for US settlement

German automaker, Volkswagen AG will have to pay whopping $15 billion in cash for settlement in the United States after it was found that the company rigged emission testing on its vehicles, according to people closer to the matter

The company is looking to settle with more than 500,000 U. S. diesel owners and government regulators for tis over polluting vehicles in the country. The sources said that the settlement could be announced on Tuesday in Washington. The settlement includes $10.033 billion to offer buybacks to owners of about 475,000 polluting vehicles and around $5 billion in funds to offset excess diesel emissions and boost zero emission vehicles in the country. The $10.033 billion is the maximum VW could pay for buying back all the vehicles but the actual amount could be lower if a alrge number of buyers take buybacks.

The company is expected to announce another settlement with nearly all U. S. state attorneys general over excess diesel emissions from its vehicles. This settlement is expected to be valued at around more than $500 million and will take the total settlement amount to over $15 billion, according to someone closer to the matter.

Spokeswomen for U. S. Environmental Protection Agency and Volkswagen have not commented on the matter.