VW diesel owners to get an average of $5,000 in settlement

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DETROIT - Volkswagen will spend about $10.2 billion to settle an emissions cheating scandal in the U.S. that has turned into one of the largest cases of corporate deception in the nation's history.

Two people briefed on settlement talks said most of the money would go to compensate 482,000 owners of cars with 2-liter diesel engines that were programmed to turn on emissions controls during government lab tests and turn them off while on the road.

Investigators determined that the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems in humans. VW diesel owners first learned of the deception in September, and most have seen the value of their cars decline. According to the two people, Volkswagen will offer to fix the cars for free, but any fix will likely hurt the cars' acceleration and fuel economy.