Volkswagen to pay $15 billion in U.S. emissions settlement

German automaker Volkswagen AG will pay more than $15 billion to settle customer and government claims that it cheated on emissions tests.

A U.S. District Court in San Francisco unveiled the settlement Tuesday. Under the agreement, VW will pay $10 billion to buy back or repair about 475,000 vehicles with diesel engines that used illegal software to manipulate government emissions tests.

VW will pay owners $5,100 to $10,000, depending on their vehicle’s age.

The company also will invest $2 billion in green energy funds to research zero-emissions vehicles, and direct $2.7 billion for environmental mitigation to offset diesel emissions.

Another $603 million will go toward settling claims from 44 states, Washington, D.C., and Puerto Rico.

According to the Associated Press, VW still faces billions more in fines and penalties and possible criminal charges.

The company admitted its diesel engines had a software mechanism to turn on emissions controls during government tests and turn off while on the road for better mileage.