German car manufacturer Volkswagen needs to pay more than $10 billion for the United States emssions scandal.

VW will pay its diesel car owners at least $5,100, which may cost more than $10 billion for civil a settlement, according to Reuters. Most of the 500,000 customers affected by the VW emission scandal are Americans. Due to court-imposed gag rules, according to the source of the media publication, each VW diesel owner will receive an average of $5,000 to compensate the damages along with the estimated value of the vehicle as of September 2015.

One of the parts of the settlements of the German car manufacturer is to help boost emission vehicles. The settlements also require VW to introduce a program to offset excess diesel pollution.

In September 2015, the car company was reported disclosed that they used a software to evade emission requirements for almost 11 million cars worldwide. Amid company's scandal, the former CEO Martin Winterkorn resigned from its position.

Meanwhile, the VW lawyers went to court to seal a historic $15 billion settlement to resolve its U.S. emission scandal, The Street Journal reported. VW Chief Executive Matthias Müller went to Brussels to try to reduce a potential flare up with the European Commission over demands that the German car maker also offers compensation for nearly nine million European customers.

On Thursday, July 1, Muller had a meeting with the European Union Industry Commissioner, Elzbieta Bienkowska. During the meeting, Muller clarified that the German company had no plans of offering equal compensation to Europeans owners who bought tainted diesel vehicles.

He admitted they find US emission standards tougher as it made fixing cars difficult. He said in a statement on Thursday that VW is "solid financially," however, due to the damage payments in some arbitrary amount, it would be too much for Volkswagen to cope with.

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Topics Volkswagen