Owner Payouts Revealed as Volkswagen, Bosch Settle 3.0-liter Diesel Claims for $1.55 Billion

Steph Willems
by Steph Willems
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owner payouts revealed as volkswagen bosch settle 3 0 liter diesel claims for 1 55

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.

Steph Willems
Steph Willems

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4 of 14 comments
  • Pricha33 Pricha33 on Feb 01, 2017

    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.

  • ZCD2.7T ZCD2.7T on Feb 02, 2017

    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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