Published: Sun, May 14, 2017
Economy | By Melissa Porter

Judge approves emissions settlement for 3-liter VWs

Judge approves emissions settlement for 3-liter VWs

The deal - which will see VW pay up to $1.2bn to repurchase or fix around 75,000 3.0-litre VW, Audi and Porsche cars - already received preliminary approval in February.

Volkswagen has agreed to buy back, offer trade-in credit of equal value for or terminate the leases of approximately 20,000 eligible older Volkswagen and Audi 3-liter diesels from from the 2009-2012 model years that have been dubbed "Generation 1" vehicles. Owners of the vehicles will receive between $7,000 and $16,000 from Volkswagen to fix the cars if the emissions remedies are approved.

In total, VW will pay about almost $24bn to buy back cars and compensate owners in the United States and Canada, after admitting it installed software to cheat emissions tests in a decade-long conspiracy.

The 3-liter settlement brings Volkswagen's tab for civil payments in the emissions scandal to around $17.4 billion, U.S. Justice Department attorney Joshua Van Eaton reportedly said in court Thursday. The agreement ends most of the litigation over VW's cheating scandal, which became public in 2015.

The Judge approved the $1.2 billion deal, which involves around 82,500 vehicles with 3-liter engines, including newer Volkswagen, Audi and Porsche cars and sport-utility vehicles.

The judge on Thursday also approved a separate settlement in which VW supplier Bosch must pay $327.5 million to consumers, including $350 payments to 2-liter vehicle owners and up to $1,500 each to 3-liter owners.

The earlier settlement concluded in a $14.7-billion deal, finalized in October 2016, to lay to rest claims over some 500,000 two-liter diesel engine vehicles tainted by emissions-cheating software.

Volkswagen still faces a shareholder class action claiming it defrauded USA investors by concealing its use of defeat devices in some 11 million vehicles worldwide. "These agreements accomplish our goal of making the consumers harmed by Volkswagen's emissions deception whole, while repairing or removing illegally polluting vehicles from our roads". Elizabeth Cabraser added, "We believe the substantial compensation and steps to fix or remove polluting cars from the roads detailed in the settlements provide excellent value to consumers and hold Volkswagen and Bosch accountable for their breach of consumer trust". Regulators have said that in normal driving they emitted up to 40 times more smog-causing nitrogen oxide than the legal limit.

Volkswagen has reached an agreement with 3.0-liter V6 TDI owners for the recall and fix of Audi, Porsche and VW vehicles so equipped. Volkswagen has admitted to installing the software on almost 600,000 diesel-powered vehicles in the US and some 11 million vehicles globally.

Like this: