jhawklver
Veteran Member
There are different fines/lawsuits going on. EPA has the ability to fine $37,500 per non compliant car, and $37.500 per day. EPA is the regulatory agency in this situation. Compare to Toyota or GM - that regulator was the NHTSA and the max fine they can offer is $37 million. Both Toyota and GM got the maximum, and I believe Toyota got multiple cases of the $37 million (2 I believe).Just another quick reminder to those who think the VW will be forced to compensate owners based on $37,000 per car...
Most companies fined by the government get the amount settled down to about 10% of the proposed amount. This could mean as little as $3,700 per car for VW.
Even the Deepwater Horizon oil spill, which has been called "THE WORST ENVIRONMENTAL DISASTER IN HISTORY" was only fined 20 billion, and they are being allowed to deduct 15 billion of that on their taxes to lessen the financial impact of the penalty.
Those people thinking that this will be a huge payday for TDI owners are being very optimistic.
This is well established and documented in terms of reduction. Most of the reductions even come with a clause to not admit wrongdoing. Since VW already admitted guilt, they can't even hold that over VW's head.
I still think this all hinges on CARB and how much they want to be a player in this whole issue. This may be an attempt to see who can flex the most muscles, and this plays into CARBs agenda.
The DOJ is separate from the regulator agency (EPA or NHTSA). In GM and Toyota's case, they sued for tens of billions (sound familiar?). In both cases, they agreed to far less and to defer criminal charges if GM and Toyota agreed to a set of things including independent monitors, fines, etc. DOJ's involvement in all three cases seems to be due more to how the companies handled it once they knew of a problem rather than the regulations (that's for the EPA/NHTSA).
Neither of these fines counted lawsuits, recalls and compensation programs. I believe Toyota set aside over a billion for recalls and I'm sure a bunch more for lawsuits (remember, people died). GM put aside something like $600 million for compensation (for those injured past a certain level and/or deaths). GM also had individual lawsuits for those who didn't take compensation plan, and again those involved serious injury or death. I've not done a ton of research beyond what I know above but I don't think the actual recall took as much time, money or engineering as ours likely will for some of the cars.
So to recap, VW's three major pain points in terms of fines/costs are regulatory (EPA fines), Criminal/Fines to settle lawsuit (DOJ) and recall/buyback/compensation. Many of us have speculated the fines in the first one or two could be reduced if VW is generous with the third part of it.
I said it earlier in the thread but it is crazy the teeth the EPA has in potential fines vs. the NHTSA and actual safety issues, but I did read they are talking about raising the maximum fine from $37 million to much larger for the NHTSA.
VW's timing on getting caught is pretty damn bad... as the DOJ, EPA and CARB are certainly in the mood to send a message and in the DOJ's case this is the third automaker in recent years to be in their crosshairs.
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