Volkswagen Group of America has hired Kenneth Feinberg to create and administer a compensation program for U.S. owners of more than 500,000 VW diesel-powered cars that had been sold with software enabling the cars to lower carbon emissions only when being tested. Globally Volkswagen has sold about 11 million diesel vehicles that included the software.

Feinberg has served in a similar role for compensation of victims of the 2001 attack on the World Trade Center, the Troubled Asset Relief Program (TARP), the 2010 BP Gulf of Mexico well explosion, the Boston Marathon bombings and the General Motors ignition switch debacle, among others.

Michael Horn, Volkswagen Group of America’s CEO, said:

We are pleased to announce the retention of Kenneth Feinberg. His extensive experience in handling such complex matters will help to guide us as we move forward to make things right with our customers.

Feinberg said that he will begin work “immediately designing an independent claims process,” and to accomplish that goal seeks input not only from VW, “but also vehicle owners, their lawyers, and other interested parties.”

Karl Brauer, a senior analyst at Kelley Blue Book said:

This is a major step in resolving Volkswagen’s diesel challenges. The company’s TDI customers are some of its most loyal and passionate, which is why many have felt so disappointed by the events of the past few months. Feinberg’s experience in organization and resolving matters between customers and large corporations is exactly what VW needs right now.

Also on Thursday, parent company Volkswagen cut the number of company managers reporting to CEO Matthias Müller by nearly half and named five new executives to the list of Müller’s reports. More management changes are planned Müller said.

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