21.12.2016VW agrees $1 bn settlement for US 3.0 TDI emissions scandal models
Volkswagen has agreed a $1 billion (£810 million) settlement with United States regulators and car owners to buy back or fix more than 80,000 VW, Audi, and Porsche vehicles fitted with the 3.0 litre TDI engine.
As the latest settlement from VW in the fallout from the company's emissions scandal, Reuters reports that the company has committed to spending around $17.5 billion in the US, covering claims from owners and fines from environmental agencies. There is the possibility for that to increase further as VW still faces a criminal investigation from the US Justice Department.
The latest settlement involves the 3.0 litre TDI diesel models, including the VW Touareg, Porsche Cayenne, and Audi's A6, A7, A8, A8L, Q5, and Q7 - all sold in the US market.
Broken down, the settlement accounts for around 63,000 VW, Audi, and Porsche models from 2013-2016 to be recalled and repaired to the certified emissions standards, subject to approved modifications from government bodies. If the group is unable to carry this out, it will offer to buy back or terminate leases of the affected models.
The same set-up will be offered to around 20,000 2009-2012 model year vehicles from VW and Audi, while the VW Group will contribute $225 million to the environmental remediation trust, established as part of the emissions scandal compensation system. Finally, $24 million will go to the California Air Resources Board to back the use of zero emission vehicles in the state.
Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, said: "The agreement announced by the Court today between Volkswagen and U.S. environmental regulators is another important step forward in our efforts to make things right for our customers, and we support the efforts of the Court to bring about a fair and reasonable resolution of remaining 3.0L TDI V6 claims as quickly as possible."