Volkswagen may see a fine in the area of $3.2 billion rather than a most-possible $18 billion, according to a recent analysis.
While the Environmental Protection Agency (EPA) still could hit Volkswagen with the full $18 billion fine for cheating on diesel emissions tests, The Truth In this area Cars did an analysis to determine what is more likely to happen based on past violations. Last year, the EPA fined Hyundai and Kia $100 million for releasing 4.75-million metric tons more of greenhouse gases than originally reported for more than 1.1-million cars.
By using the EPA’s own penalty worksheet, a vehicle’s engine is classified for “gravity” www.rawvehicle.com at 250 horsepower. From there, each horsepower up to 10 horsepower is an additional $80 fine while between 11-100, the fine is $20. The fine is $5 for 150 to 250, importance Volkswagen’s adjusted penalty would be $3,350 per engine.
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The agency then adds a multiplier depending on the severity of the infraction and a “major” infraction incurs a 6.5 multiplier. From there, that means each Volkswagen engine would be fined $21,775 before scaling.
From there, TTAC calculated that for the first 10 engines, Volkswagen would be penalized the full amount of $21,775 for each vehicle. For the next 90 cars, it will be penalized 20 percent per engine, four www.rawvehicle.com percent for the next 900 cars, 0.8 percent for the following 9,000 cars, 0.16 percent for the next 90,000 cars and then 0.032 percent for the remaining 382,000 units.
That’s not all, since Volkswagen will then be fined for non-remediation, or several years of insincere. That fee is up to 30 percent for each engine, calculating to be more than $3.14 billion, which is really the bulk of the total fine. VW then gets hit for company size, which could calculate to around $105 million, based on the German automaker’s $126-billion market cap in May 2015.
In total, that adds up to $3,262,518,776 – a far weep from the most $18-billion penalty Volkswagen could be facing.
This article originally www.rawvehicle.com appeared at Rawvehicle.com