The settlement covers the states of Connecticut, Delaware, Maine, Massachusetts, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington. In June 2016, VW reached a $603 million agreement with 44 other US states, the District of Columbia and Puerto Rico to resolve state consumer protection claims.
In total, the automaker has agreed to spend up to $25 billion in the US to settle claims from owners, environmental regulators, states and dealers and to make buy-back offers, Reuters reports.
In a statement, VW said today’s settlement “avoids further prolonged and costly litigation as Volkswagen continues to work to earn back the trust of its customers, regulators and the public.”
As part of its penalty for installing defeat devices in diesel cars, allowing them to cheat the Clean Air Act, the VW agreed to spend $2 billion in support of zero-emissions vehicles and charging infrastructure in the US. Last month VW launched launched a US subsidiary, called Electrify America, to manage the $2 billion.
According to the Electify America website, VW will install more than 500 electric vehicle charging stations nationwide beginning this year. This includes more than 300 chargers in about 15 metro areas and developing a high-speed, cross-country network of more than 200 chargers.
The automaker will also spend money to increase awareness and education about EVs and will launch a “Green City” initiative in a yet-to-be-named California city. The Green City will pilot various sustainable mobility prorgams, such as a ZEV-based shuttle service, EV-based car-sharing program, or ZEV transit application.
Some EV charging companies have criticized the federal government’s decision to allow VW to oversee the $2 billion EV investment, arguing that it will give VW a competitive advantage in the electric vehicle charging market.