Volkswagen to Buy Back or Fix Diesels, Compensate Owners and Environment

Steph Willems
by Steph Willems

Embattled automaker Volkswagen reached a long-awaited settlement deal in principle with regulators this morning in a California courtroom.

Before presiding judge Charles Breyer, Volkswagen agreed to buy back afflicted diesel models from U.S. buyers, while compensating their owners from a newly created fund. The automaker would accept early termination on leased models, and fix some vehicles if requested by owners.

According to USA Today, the deal would include “substantial compensation” for owners of 2.0-liter TDI models involved in the diesel emissions scandal. Tens of thousands of 3.0-liter V6 engines were also equipped with an emissions law-skirting defeat device, but those models are not included in the settlement.

The settlement was reached in principle with the Environmental Protection Agency, California Air Resources Board, and California attorney general’s office.

In addition to compensating consumers, Volkswagen will set up an environmental remediation fund to offset the environmental impact of the vehicles, which polluted up to 40 times the allowable limit starting in 2009. The fund will be used to promote green automotive initiatives, such as building electric charging stations.

The Federal Trade Commission, which filed a lawsuit against Volkswagen over their misleading “clean diesel” ad campaign, is said to support the deal.

Breyer set a June 21 deadline for all parties to file preliminary proposals on the settlement, with a preliminary hearing set for July 26. Some of the negotiations that will occur before July 26 will be confidential, Road & Track reports.

The automaker issued a statement in the wake of the settlement:

“Volkswagen is committed to earning back the trust of its customers, dealers, regulators and the American public. These agreements in principle are an important step on the road to making things right. As noted today in court, customers in the United States do not need to take any action at this time.”

Steph Willems
Steph Willems

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  • APaGttH APaGttH on Apr 21, 2016

    Pretty clear the fix isn't easy, or cheap, or won't dramatically impact vehicle performance and/or reliability. If all of these boxes were checked, they wouldn't have cheated in the first place.

  • Storz Storz on Apr 22, 2016

    So I am reading somewhat conflicting reports (and I realize at this point its all speculation) but some sources are saying buyback at 2015 FMV + 5000 cash, other places I've read says VW has set aside 1 billion to compensate owners which works out to about 2k per person (assuming ~480k 2.0 cars) Wonder which is correct?

  • Hermaphroditolog Good hybrid cars use ICE implosion mode.Mercedes-EQXX uses implosion turbines (turboexpanders) for regeneration from heat losses.
  • Kosmo I, for one, and maybe only one, would buy a 5.0 L, stickshift variant of the sedan/hatchback that is Ford's "Not A Mustang EV" tomorrow.I'd buy the sportwagon version yesterday.
  • Akear I am counting the days when Barra retires. She has been one long nightmare for GM. People don't realize the Malibu outsells all GM EVs combined.
  • Redapple2 you say; most car reviewers would place it behind the segment stalwarts from Honda and Toyota,........................... ME: Always so. Every single day since the Accord / Camry introduction.
  • Akear GM sells only 3000 Hummer EVs annually. It is probably the worst selling vehicle in GM history.