Volkswagon to pay $2.8 billion in emission scandal

10 days to pay $2.8 billion dollars, that was the sentence handed down to the German automaker Volkswagen in Detroit Federal Court Friday.

According to auto experts, the ruling is just a formality and a smaller piece of a much larger, more expensive pie. 

Michelle Krebs, Autrotrader analyst says "the total tally when all said and done will be around 20 billion dollars. There will be compensation to owners of vehicles there are fines and costs that go with this."

3 years probation was also ordered by a federal court magistrate under which the automakers will be under the direction of an independent compliance monitor.

But what all does this mean for the industry and consumers?

Krebs says it has sent a message to the entire auto industry that you if cheat, you will get caught.

This all stems from a decade long scam on consumers put on by the German automaker.

Investigators say roughly 585,000 vehicles dubbed 'clean deisel' by Volkswagen were fitted with software that could tell when the vehicles were being tested by the EPA for poisonous exhaust.

So far a total 8 defendants have been charged in this scandal.

In the meantime the automaker will have a long road ahead trying to rebuild the trust of consumers while rolling out new products.


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