Why did Volkswagen pay a huge compensation of 14.7 billion US dollars? Was it their own fault or was it slaughtered?

In fact, the basic framework of compensation had been announced at the previous hearing. Considering the high-handedness of previous cases, it was thought that there would be some discounts when it was actually signed. Unexpectedly, Volkswagen just "gave in".

Some commentators say that Volkswagen is "spending money to avoid disaster and keep the peace", but in fact, Volkswagen's diesel cars have basically reached the end of their road in the United States , and there is no good prospect worth protecting. Unless new models and new technologies are introduced in the future, the existing diesel cars will not resume sales even if they spend money to avoid disaster. Considering the increasingly abnormal emission regulations in the future, the trend of electrification and Volkswagen's failed clean diesel car technology, the prospects are also bleak.

Charles Breyer said the result was "fair, just and adequate." So what does this sky-high compensation of $14.7 billion include?

First, the cost of buying back or repairing 475,000 2.0-liter diesel vehicles, including Beetles, Golfs, Jettas, and Passats sold from 2009 to 2015. Then, each owner will be compensated $5,000 to $10,000 depending on the condition of the vehicle. Then there is a $2.7 billion environmental protection fund, plus an investment of $2 billion in U.S. electric vehicle infrastructure over the next decade.

Yes, the $14.7 billion does not even include the settlement amount for the 3.0-liter engine, and the EPA and the California Atmospheric Commission did not issue any fines.

The 2.7 billion environmental protection fund and 2 billion infrastructure investment are considered compensation for past air pollution, which is consistent with the previous rumors that compensation will replace or partially replace environmental fines. It is reported that these two sums of money were instructed by the Environmental Protection Agency and the California Air Transport Commission. The cash compensation of 5,000-10,000 to car owners is considered punitive compensation for deceiving consumers, and Volkswagen has already paid some of this money. The amount of these three sums depends on the bargaining power and status of both parties. You should know that Toyota paid 1.1 billion US dollars for the brake door in 2012, and Hyundai of South Korea only paid 100 million US dollars for falsifying the fuel consumption of 1.2 million vehicles in 2014.

"The judgment should not only resolve this case, but also serve as a deterrent: if car companies cannot fulfill their promises and invest correctly in environmental protection technologies, then everyone will pay for environmental protection." The chief of the plaintiff's legal team interpreted the 2 billion infrastructure compensation investment in this way.

The most embarrassing part is the repurchase. According to Phoenix Auto's estimate, the repurchase cost accounts for more than half of the 14.7 billion.

Only by carefully analyzing the cost of the repurchase can we see how unique and sophisticated the U.S. environmental protection agency is in playing this trick, and we can also see how big a hole Volkswagen has dug for itself with its "pseudo-clean diesel car."

Since the incident in October last year, Volkswagen has been struggling with the US Environmental Protection Agency and the California Atmospheric Control Commission over the "recall plan", from the initial change of the aftertreatment technology route to the later rumors of sacrificing power to maintain emissions. No matter what the plan is, the EPA has never approved it after several rounds. If it is not approved, it cannot be repaired or recalled, and it has been dragged on and on until now. Is Volkswagen completely out of technical solutions? Or is the US too strict? I don't know the inside story, so I dare not speak rashly.

In short, the result is that although the federal court gave car owners two options, buyback or recall, because Volkswagen's recall repair plan was not approved by the environmental protection department, there is actually only one option, which is buyback. Even if Volkswagen's die-hard fans and true fans are willing to choose recall repair, they can only wait until Volkswagen comes up with an approved recall plan. However, there is not much time left for both parties, and the deadline is September 2018. How many car owners are willing to wait?

In the past, compensation cases involving American automakers were all led by road safety departments. As "new forces", the U.S. Environmental Protection Agency and the California Air Transport Commission have set a precedent in this case.

"This is a big case, not because it involves many vehicles, but because it is unique. Although cases like the GM ignition door case involve a huge number of vehicles, they are easy to handle and can be solved by replacing the defective parts. Car companies know how to recall. This case involves environmental protection, new fields, new judicial proceedings, and new authorities. It is not a fine of several million, but a penalty of more than one billion, and the negative impact must be eliminated." explained the consulting expert of the plaintiff's legal team.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.