Currently reading: VW set to announce $10bn compensation package in US

Reports emerging in the US claim payments of up to $7000 (£4700) will be offered to owners, as part of a settlement totalling $10 billion (£6.7 billion)

Volkswagen car owners in the US affected by the diesel emissions scandal could receive up to $7000 (£4700) in compensation as part of a $10 billion (£6.7 billion) settlement from the manufacturer, reports suggest.

Cash payments from around $1000 (£600) to $7000 (£4700) may be offered to owners, depending on the car’s age and other factors, with the settlement proposal set to be sent to a federal judge for approval by June 28. The amount could still change before then.

That payment would compensate 482,000 owners of 2.0-litre diesel cars fitted with a defeat device, but VW is still facing accusations over its 3.0-litre diesel engines as well as fines from US regulators and potential criminal charges. It is still expected that European VW owners will not receive compensation, because the firm maintains it didn't break any laws in the territory.

VW CEO Matthias Müller addressed shareholders on Wednesday, issuing an apology for the company’s actions, but failed to announce a figure for how much the emissions scandal would set the company back before a final deal was agreed with US authorities.

The manufacturer recently outlined its ‘2025 Strategy’ which looks to significantly escalate its electric car lineup in the future in an attempt to repair its image, but German authorities are currently pushing for investigations into VW’s former board members in the wake of dieselgate.

When contacted by Autocar, Volkswagen UK said it could not comment on the reports.

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