Business/Economy

Alaska gets $2.5M in Volkswagen settlement while consumers get payouts in separate cases

Alaska will receive $2.5 million under a settlement requiring Volkswagen to pay $570 million for marketing, selling and leasing diesel vehicles equipped with illegal software aimed at beating emissions tests, according to the state Department of Law.

The millions allocated to Alaska are based on the number of vehicles sold in the state. The law department says there were 1,245 affected Volkswagen and Audi 2.0 liter diesel vehicles here. That money will go to consumer protection enforcement and education at the direction of the attorney general, said assistant attorney general Davyn Williams.

People who bought or leased vehicles are also eligible for payment under separate settlements, according to DOL.

An investigation by the attorneys general found Volkswagen sold more than 570,000 2.0 and 3.0 liter diesel vehicles nationwide containing the "defeat device" software, which intentionally gives a false reading to pass emissions tests. In doing so, the company violated state consumer protection laws.

Under the class action and federal settlements, Volkswagen is on the hook for $10 billion.

The German car manufacturer has been ordered to implement a restitution and recall program for 475,000 owners and lessees of the diesel vehicles with model years 2009 through 2015. Once the program has court approval, those potential recipients will get payments of at least $5,100. They could get up to $10,000, The New York Times reported.

People may also have their vehicles fixed, pursue a buyback or get out of leases, Williams said.

There is a website set up for people to look up if their vehicles are affected. Vehicles covered in the settlements include VW Beetle, Golf, Jetta, and Passat, as well as the Audi A3.

Jerzy Shedlock

Jerzy Shedlock is a former reporter for Alaska Dispatch News. He left the ADN in 2017.

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