WASHINGTON (Sputnik) — Giles explained that the $1 billion includes $225 million that will be added to a $2.7 billion mitigation fund that was part of the October settlement, to help offset damage from excess emissions of nitrogen oxides.
"We estimate that the cost of the 3-liter settlement that was lodged today was about $1 billion," Giles said on Tuesday.
The settlement for cars with 3-liter engines that was disclosed on Tuesday follows the earlier agreement, which covered about 475,000 2-liter cars.
The settlements announced so far cover civil penalties sought by the US Department of Justice, the state of California and the US Environmental Protection Agency, Giles noted.
Volkswagen still faces possible criminal fines and a number of class-action lawsuits from car owners, which could result in additional penalties.