By on May 11, 2017

Porsche cayenne diesel

Is was probably with a sigh of relief that U.S. District Judge Charles Breyer granted final approval to a settlement for owners of 3.0-liter diesel Volkswagen Group vehicles earlier today. The issue has consumed no shortage of court time both before and after last December’s preliminary approval for a buyback, compensation and fix plan.

More than 80,000 Volkswagen, Porsche and Audi models were sold with engines rigged to cheat on emissions tests. Many of those units will now be bought back and others fixed — a plan with a minimum $1.22 billion price tag.

Breyer’s approval marks the end of the automaker’s main legal wranglings in the U.S. It also opens the cash floodgates, as even owners who opt for a fix will see a pile of crisp, clean dollars from VW.

A further $327.5 million will be paid to U.S. diesel owners by Robert Bosch GmbH, the German supplier that had a hand in developing the engines. Already, more than 70 percent of owners have registered for VW’s compensation package.

VW is also on the hook for a further $225 million in environmental initiatives to satisfy the U.S. Justice Department.

“We believe the substantial compensation and steps to repair or remove polluting cars from the roads detailed in the settlements provide excellent value to consumers and hold Volkswagen and Bosch accountable for their breach of consumer trust,” said Elizabeth Cabraser, lead counsel for the consumer plaintiffs, in a statement.

Under the plan, vehicles have been split into two groups. The first, 2009-2012 “Generation One” models, contain older engines that so far have proven difficult to fix. As of today, no repair has received approval from the Environmental Protection Agency. Owners of such vehicles can opt for a buyback, or hold their horses and wait for a fix (as well as $7,755 to $13,880 in compensation cash).

The automaker will pay owners seeking a buyback the equivalent of 2015 “clean” trade-in value, adjusted for mileage and options. That equals a $24,755 to $57,157 value, depending on model. A trade-in credit option has also been made available for those looking to pick up a new Volkswagen Group model.

The crop of 2013-2016 “Generation Two” vehicles is viewed as being easier to fix, so those owners face a different choice. If VW can rustle up a fix in a timely manner, each owner will receive the emissions modification plus $7,039 to $16,114 in cash (with the option of half up front). By “timely,” the settlement means no later than December 20th of this year. Should VW come up dry on a fix, it’s buyback time for these newer vehicles — a move capable of adding billions of dollars to VW’s tab.

Should VW miss the deadline, similar buyback rules apply. Owners will receive between $43,153 to $99,862 for their luxury vehicles.

All of these sums are for the VW settlement only. Owners stand to gain fatter stacks as Bosch ponies up its admittedly smaller share of the penalty.

[Image: Volkswagen Group]

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12 Comments on “Cash Coming to 3.0-liter Diesel Owners as Judge Approves $1.22 Billion Volkswagen Settlement...”

  • avatar
    SCE to AUX

    I want to see a “cash-for-clunkers”-style video of a Cayenne TDI or A7 TDI going into the crusher.

  • avatar

    I rolled the dice with a 2014 Audi Q7 Prestige S-Line w/52k miles for this very reason.

    We shall see…

    • 0 avatar

      So you bought a car so that you can cash in on it? I hope you got a really good deal.

      • 0 avatar

        Flybrian, my apologies, but I hope you take it in the shorts.

        I’m offended by the money grab by VW owners. I’m good with a reasonable buy-back. I’m good with a fixit plus an inconvenience fee. I’m upset with up to $16K of bonus money!

        Everybody’s air is being polluted, not just VW owners. The regulators were defrauded and lied to, not just VW owners.

        • 0 avatar

          I’m a dealer, so I can afford to. Also, I can’t really lose – I either get a $8-9k ‘rebate’ in the form of a fix or up to $75k in a buyback. The roll of the dice is waiting until December 20th. In the meantime, it’s our staff demo/runner/loaner.

          I did this already with a 2011 Jetta TDI with 62k last year. I bought it genuinely to retail it when the bottom dropped out of the VW Diesel market and – because the car actually had was an electrical nightmare – ended up sitting on it until the buyback came through. My $6300 + fee wholesale buy ended up netting $18,500 on a buyback.

          Funny thing is, you can still cash in on the 2.0l buyback and dealers are still doing this, only now netting much slimmer returns – they’re buying at perhaps two to three thousand back of the buyback amount for a certain car from fleet/lease lanes (finance repossessions) and driving up the MMR value of these TDIs to astronomical levels.

          BRN, I don’t see how this is a ‘money grab.’ This is a buyback amount that the courts and VAG agreed to. They lied, and the motoring public is reaping the benefits. Who is really getting hurt in this? VAG? They perpetrated the crime and fraud.

        • 0 avatar

          This. Thank you, I began to think I was alone in feeling the compensation cash is unjustified.

          • 0 avatar

            Don’t get excited. I am clearly getting some sort of runaround from the claims agency for VW. They have asked for “proof of first sale” a good three times…when they leased and then sold the car to me legit normal retail. They took checks and VW finance released a lien. I can hardly wait to see what “misc/other” means when I call the claims number and hope the csr is intelligent so he/she can read the comments and maybe, after a bill of sale, lease agreement and registration, I can prove “first sale” to the folks who I bought it from.

        • 0 avatar

          A “fix” is going to result in a vehicle that performs radically different from the vehicle that was purchased. Common sense tells you that if there were no negatives in making a compliant product VW would have done so in the first place and skipped all the cheat software. So your suggestion of a fixit with some token fee is not equitable to TDI owners.

          VW deliberately committed an Enron-Worldcom grade fraud against regulatory agencies and their customers. I only hope that the financial pain is excruciating enough to set an example.

          • 0 avatar


            Yes, people were deceived. Yes, the fix results in a vehicle that performs different. Radically? No.

            This is why there should be a reasonable buyback, to make you whole. Not a cash windfall. Certainly not a money grab like Flybrian describes. He was’t deceived at all.

  • avatar

    We got an ’14 A8 TDI with a $93K sticker on a CPO deal with 8,400 miles on it for $71k. And now we’re going to get $15k back on it! We got a $93k car for $56k! And it’s a great car – hoping the emissions fix isn’t too harsh on it . . . .

  • avatar

    So as Canada has taken a similar stance on the 2.0L TDI recall ( only months later than USA ), if I buy a 2014 Q5 TDI today would I be in line for a buyback ( if no fix ) , or at a minimum extra cash back from VW if they do get an approved fix. The dealer I spoke to today ( who played dumb on the whole issue ) , that any settlement only applied to owner at time defect was detected in 2015. That doesn’t make sense to me , the prior owner finished his lease or traded the car back in, I would expect the current owner at the time of settlement to receive any compensation.

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