Volkswagen, Feds Reach Fix and Buyback Deal on Remaining Diesels: Report

Steph Willems
by Steph Willems

Volkswagen’s disastrous diesel debacle could nearly be over in the U.S.

Bloomberg has reported that sources close to the issue claim VW and U.S. regulators have agreed on a plan for the roughly 80,000 Volkswagen, Audi and Porsche vehicles equipped with emissions-cheating 3.0-liter engines. Those sources have also revealed how many vehicles will be bought back and scrapped, and how many will live to see another day.

Both the Environmental Protection Agency and California Air Resources Board (CARB) have agreed to let VW fix 60,000 vehicles with a simple software update, the sources claim. About 19,000 older vehicles would be too complex to fix, so the automaker will instead offer to purchase them from the owner.

The number of vehicles deemed unfixable could change before an official deal is announced.

The court-appointed lead counsel for the steering committee behind a consumer lawsuit against VW claims a deal hasn’t been reached. In an email, Elizabeth Cabraser said no agreement exists between owners and lessees of certain 3.0-liter VW Group vehicles.

“Any resolution must grant these consumers similar benefits — including a choice between a buyback or a fix if approved by regulators — as were offered to class members in the 2.0-liter vehicle litigation,” wrote Cabraser. “While an agreement between the EPA and Volkswagen may address some of the environmental damage, it does not hold the company accountable for the harm caused to consumers. We will continue to pursue a fair resolution on their behalf.”

Avoiding a full buyback would reportedly save the company $4 billion. As of now, there’s no price tag attached to the rumored plan. The models affected by the scandal are the VW Touareg, Porsche Cayenne, Audi Q5, Q7 and A8.

The U.S. District Court judge presiding over the issue got tired of waiting for a fix this past August, ultimately forcing VW to enter settlement talks. Already, VW’s diesel transgressions have cost the automaker $16.5 billion in the U.S. alone. The automaker choose to drag its feet to avoid repeating the costly full-scale buyback (with the option of a yet-nonexistent fix) seen with its 2.0-liter vehicle.

Satisfying regulators isn’t VW’s only task. It also faces a class-action lawsuit from customers (all of whom want their 3.0-liter vehicle bought back), and a Federal Trade Commission lawsuit over false advertising.

Note: This story has been updated to include comment from Elizabeth Cabraser, Court-appointed Lead Counsel for the Plaintiffs’ Steering Committee in the Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation.

Steph Willems
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 9 comments
  • Orenwolf Orenwolf on Nov 15, 2016

    Gotta wonder what the deal is there. If VW could release an innocuous "software update" that fixed the issue they would have - so either the fix isn't really a fix, or (more likely) there's going to be some annoyed owners with engines that produce less power, or have worse fuel economy as a result of this "fix", IMHO.

    • See 6 previous
    • Indi500fan Indi500fan on Nov 15, 2016

      @RobertRyan In my view there's a very big difference between trolling suits by class action lawyers and accusation by EPA/Fedgov.

  • SCE to AUX SCE to AUX on Nov 15, 2016

    I didn't realize all 3.0 TDI customers wanted a buyback - that's significant.

  • SCE to AUX The fix sounds like a bandaid. Kia's not going to address the defective shaft assemblies because it's hard and expensive - not cool.
  • Analoggrotto I am sick and tired of every little Hyundai Kia Genesis flaw being blown out of proportion. Why doesn't TTAC talk about the Tundra iForce Max problems, Toyota V35A engine problems or the Lexus 500H Hybrid problems? Here's why: education. Most of America is illiterate, as are the people who bash Hyundai Kia Genesis. Surveys conducted by credible sources have observed a high concentration of Hyundai Kia Genesis models at elite ivy league universities, you know those places where students earn degrees which earn more than $100K per year? Get with the program TTAC.
  • Analoggrotto NoooooooO!
  • Ted “the model is going to be almost 4 inches longer and 2 inches wider than its predecessor”Size matters. In this case there is 6” too much.
  • JMII Despite our past experience with Volvo my wife wants an EX30 badly. Small, upscale, minimalist EV hatch is basically her perfect vehicle.
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