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Where did you read that the software would be installable by 3rd parties? I've not seen that rumor anywhere. It wouldn't be their first open source project, for sure, but I don't think they've ever open sourced a whole app.
@ianbetteridge @aral @Five For those wondering just like me, the answer is a bit complicated, but in terms of settlements paid:
On 28 June 2016, Volkswagen agreed to pay $15.3 billion to settle the various public and private civil actions in the United States, the largest settlement ever of an automobile-related consumer class action in United States history.
https://en.wikipedia.org/wiki/Volkswagen_emissions_scandal#Private_actions