By on February 1, 2017

2014 Audi A7 TDI (11 of 34)

Owners of certain Volkswagen, Audi and Porsche vehicles caught up in the diesel emissions scandal will receive hefty payouts, even if their vehicles aren’t bought back by the manufacturer.

Volkswagen and supplier Robert Bosch GmbH have agreed to a settlement worth a combined $1.55 billion, Reuters reports. The agreement covers about 80,000 vehicles outfitted with emissions-cheating 3.0-liter diesel V6 engines — 20,000 of which will return to the automaker for good.

While parting with a beloved luxury vehicle can be difficult, cold hard cash has a way of softening the emotional blow.

According to court documents, Volkswagen’s share of the settlement amounts to $1.22 billion, while Bosch will chip in $327.5 million for its role in the scandal. The U.S. Federal Trade Commission, which sued VW in the wake of the scandal, reportedly backed the deal 100 percent. Some of the cash will go towards environmental initiatives.

Because of its older engine design, Volkswagen doesn’t have a hope in hell of fixing the more aged 3.0-liter diesel models. As such, all 2009-2012 model year vehicles will be bought back, then sent into the automotive afterlife. Vehicles sold from 2013 to 2016 will be brought to compliance through a fix, with the owners receiving a nice little payout for their troubles.

Of course, that’s if VW is actually capable of providing a fix. There’s been no approved fix as of yet, though the automaker remains confident that a technical solution is on the way. After reaching an initial settlement with owners shortly before Christmas, VW made sure everyone knew about its Plan B — basically, if the Generation 2 engine fix fails to satisfy regulators, it will buy back or terminate the leases of those vehicles. The automaker could also seek permission for a partial fix, reducing nitrogen oxide (NOx) emissions.

So, what can owners expect in terms of greenbacks?

For the buyback crowd, VW will write checks for $7,500 on top of the value of the vehicle. If you’re in line for a fix, expect compensation ranging from $7,000 to $16,000, plus an extra $500 if the fix ends up sapping the vehicle’s performance.

But wait, there’s more! More cash, that is. Bosch, which refuses to admit any wrongdoing in the scandal, will fork over its own monetary penance. The sum should amount to about $1,500 for each 3.0-liter diesel owner.

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14 Comments on “Owner Payouts Revealed as Volkswagen, Bosch Settle 3.0-liter Diesel Claims for $1.55 Billion...”

  • avatar
    SCE to AUX

    1. The Bosch payout surprises me, and I’m not sure what to conclude from it.

    2. The owner settlement amounts seem fair.

    3. Compensation for lost performance is an admission that this will happen.

    4. I still believe all 80k will be crushed. The lack of an approved fix 16 months after the scandal broke is pretty telling.

  • avatar

    My boss just turned in his Passat on Monday. It basically boiled down to him driving the car for free for the time he owned it, though he really didn’t want to give it up. But as has been mentioned already, money talked…and the uncertainty of what he’d be stuck with as far as value goes in the next few years prompted him to go ahead with the buy-back. While he was there, they mentioned a pretty good deal on various other models, and he’s now considering taking them up on their offer of a new GTi. They’re offering something like $5000 total off the price, so it works out to something approaching $21k for the car (only offered for now to current VW owners). Not sure what will happen to the Passat, as it was beyond clean and well-cared for. Would be a true shame if it wound up in the crusher.

    • 0 avatar
      SCE to AUX

      The Passat will likely go to a holding pen, and then on to Elysium.

      Interesting deal being offered on the GTI – this heavy discounting will effectively add to VW’s cost of the scandal. They’re trying to slow the loss of US market share by burning cash.

    • 0 avatar

      He could have kept driving his Passat until early 2018 before turning it in, they give you a monthly mileage allotment so you can put miles on it without killing the payout. Only downside is if it breaks down badly before then or if you completely total the car or something.

      I’m probably going to drive mine for the rest of the year then turn it in then. Hopefully that’s the right gamble, lol.

      Maybe I can replace it with a low mileage 3.0 TDIs that are still under warranty. Seems like it’ll basically be a $5000 rebate on the car of sorts once you get the emissions repaired, and if they fail to do that you’ll get a gigantic payout. I’m guessing they’re not going to fail because the payouts are pretty enormous if they screw up.

      But then again I noticed all the dealers near here marked all these cars up by $6000 in the last week anyway.

  • avatar

    I actually considered driving my Jetta until the very end of the claims period, but stories of high-pressure fuel pumps eating themselves and cracked DPFs made me think otherwise. ClubTDI has stories of poor folks who went thru the claims process and were waiting for their turn-in date, only for the HPFP to grind itself to a pulp and render the car inoperative (and therefore, not acceptable to VW.) I know VW was covering some of the repairs as “goodwill” but still… time to dump it and go.

    • 0 avatar
      SCE to AUX

      Reminds me of the time I traded my 96 Grand Voyager. It had an intermittent but debilitating wiring harness issue that I let go too long.

      On the day of trade, it totally quit 1/4 mile before the Honda dealer. After towing it in, they gave me $50 for it. I was heartsick.

  • avatar

    I realize the A7 is a less practical A6 — but the 5-door fan in me LOVES them. The thought of them getting crushed makes me very…sad.

  • avatar

    Does this apply to Canada ? I can still buy an A7 that is part of this emissions issue, would I have to been registered owner at September 2015? The asking price would be a lot sweeter with the knowledge of an nice cheque from VAG down the road.

  • avatar

    We LOVE our 2015 Q5 TDi – 428 lb ft of torque at about 1600 rpm simply CANNOT be ignored, and makes the car a hoot to drive. It has also averaged 31 mpg since new – (edit) not bad at all for a 4400 lb vehicle that will hit 60 mph in less than 6 seconds flat.

    All that said, and despite the relatively generous compensation we will receive and the extended warranty to 120K miles, the one piece that’s still missing from the agreement is a buyback option for “Gen 2” TDis like ours. We might not even avail ourselves of such a buyback if it were offered, but I do think it should be offered…

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