It doesn’t pay to cheat. That’s the lesson Volkswagen will likely learn next Tuesday, when the (extended) deadline expires for filing a final settlement agreement to resolve its use of emissions-cheating “defeat devices” in more than 500,000 vehicles in the U.S. According to one report, VW’s “clean diesel” debacle will cost the carmaker $10.2 billion.
The Associated Press, citing sources close to the matter, reports that VW has agreed to pay $10.2 billion to begin the process of putting the diesel scandal behind it.
The bulk of the funds earmarked in the agreement, which is tentative and could change before it’s filed on Tuesday, will go toward compensation for the owners of VW’s affected diesel-engine vehicles.
As previously reported, compensation is expected to be offered in two forms: VW will buy back affected cars at the value before the scandal broke in September 2015, or owners can keep the cars and VW will fix them free of charge.
The proposed settlement does not include 3-liter Volkswagen diesel vehicles affected by the cheating scandal.
The sources say the value of compensation is expected to range from $1,000 to $7,000 depending on the cars’ age, with an average payment of about $5,000.
After the cost of compensation is deducted from the $10.2 billion tab, the sources say the remaining funds will be go toward penalties and for a program to remediate the environmental damage caused by pollution.
However, the carmaker could face additional penalties to government agencies, including the Federal Trade Commission, California Air Resources Board, and the Department of Justice, according to the sources.
VW was originally supposed to file a finalized agreement on June 21, but U.S. District Judge Charles R. Breyer entered an order last week giving the carmaker until June 28 to file the agreement and provide him with a detailed plan to bring affected vehicles into compliance with clean air laws.
The extension came at the request of the court-appointed mediator handling the case, former FBI director Robert Mueller.
“Given the highly technical nature of the proposed settlements in these complex proceedings, the court extends the deadlines for the Plaintiffs’ Steering Committee to file its motion for preliminary approval of settlement,” Breyer said in the order.
More details on the settlement are expected to be released on Tuesday. It will then be subject to a public comment period before final judicial approval, which could come at a July 26 hearing.
AP Sources: VW to pay near $10.2B to settle emissions claims [The Associated Press]
Editor's Note: This article originally appeared on Consumerist.