Canadian Volkswagen Diesel Owners Finally Get a Settlement; Dealers Begin Selling 2015 TDIs

April has brought good news to diesel lovers and haters on both sides of the border.

After spending the winter (and the better part of last fall) jealously eyeing their southern neighbor’s buyback and compensation program, Canadian owners can now apply for that longed-for envelope of Volkswagen cash, as well as a one-way-ticket to hell for their emissions-rigged TDI model.

On Friday, the automaker settled court cases in Ontario and Quebec, paving the way for a 2.0-liter diesel settlement program that starts next week. The models involved are the same as in the U.S. — 105,000 units in all — and owners and lessees face similar choices as their American counterparts.

Unlike the recent shadowy roll-out of half-fixed 2015 models in the U.S., several Canadian dealers are proudly advertising the availability of “new” TDIs.

It’s not surprising that Canadians bought more TDIs on a per capita basis than the U.S. Gasoline taxes are higher than in the U.S. (and only going up), and Canadians have long gravitated towards smaller vehicles. A store manager told me back in 2011 that, if it was allowed, his dealership would make 50 percent of its inventory diesels — and would sell every one of them.

In hindsight, it’s probably best that he didn’t get his wish.

Those who did buy the fuel-sipping, pollution-spewing diesels are now faced with a choice. Owners can sell or trade in their vehicle, terminate their lease without a penalty, or keep the vehicle and receive an emissions modification that has been approved by regulators (coupled with an extended emissions warranty). Right now, the only approved fix is a two-phase modification, impacting only 2015 models with second-generation engines.

Buyback pricing will use the vehicle’s wholesale value as of September 18, 2015, with tweaks made for options and mileage. If an owner chooses to trade their filthy diesel in for a squeaky clean new model, the old vehicle’s fair market pricing can be applied to the price of a new vehicle. (The difference between the fair market pricing and the vehicle’s September 18, 2015 wholesale value will be handed over in the form of cash.)

Owners can begin filing claims, in paper or online, on April 28.

“We are devoting significant resources and personnel to ensuring their experience with the settlement program is a positive one,” said Maria Stenstroem, Chief Executive Officer of Volkswagen Group Canada, in a statement.

The fix that allows 2015 TDIs to remain on the road — and become legal for sale — already has dealers in the U.S. attempting to clear the models from their inventory. Now, Canada has joined the party. Here’s a local Canadian dealer — yes, the boastful one I mentioned earlier — touting its 2015 TDIs.

A software fix has brought down tailpipe nitrogen oxide emissions on these models, and next year’s much more involved hardware fix should bring the models into compliance. Despite an outcry in Europe over reduced performance in older fixed TDIs, VW claims there shouldn’t be a large impact on fuel economy or power. Keep in mind that the 2015 model fix is the only approved fix. American regulators have not green-lit any fix for 2009-2014 2.0-liter diesels.

While the option to wait around for a fix, all available evidence states that older TDI owners should sing a farewell song to their vehicle, then grab that cash with both hands.

[Image: Volkswagen of America]