After German automobile conglomerate, Volkswagen admitted wrongdoing for the installation of software to forge emission readings in their cars, the automaker has agreed to pay $14.7 billion in fines for the violation of the U.S. Clean Air Act.
Volkswagen had created smart software to detect when automobiles were being tested for compliance with emissions limits and reduce emissions for the duration of the test, thus giving the impression that the automobiles were cleaner than they actually were.
The five models involved were the Passat, Golf, Jetta, Beetle and Audi produced between 2009 and 2015. These cars reported emissions of 40% lower than they were actually running. The owners of about 500,000 automobiles which fall under that category, will receive about $10 billion to purchase back their cars after they were recalled.
Of the $14.7 billion, $2 billion would be used to clean up the environment while the remaining $2.7 billion would be used in promoting zero-emission cars.