I liked D) initially but I felt it was wrong because it appeared to have two meanings. 1) the auto manufacturer simply has in its posession test driven cars with disconnected odometers 2) the company test drove cars with disconnected odometers. Does it matter if an SC question has a dual meaning? I would suspect this scenario would be wrong in most cases. Can someone point out what is wrong with this reasoning?
The meaning 1) you suggested is more applicable to (D) than (E). If we relook at E:
having cars that were test-driven
with disconnected odometers
the italics portion is restrictive clause. The meaning for complete statement in passage may be:
they paid > 16m in civil damages for having some cars (a subset of only cars that were test driven) with disconnected odometer.
Also, we need to find best option available. E is good.