Cash Coming to 3.0-liter Diesel Owners as Judge Approves $1.22 Billion Volkswagen Settlement
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]
Join the conversation
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Oberkanone Does GM build anything to compete with this? Does GM build any competent hybrids?
- Dukeisduke So, it'll be invisible, just like all other Gen 6 Camaros?
- Alterboy21 The gov't has already mandated control of your vehicle. 10 years ago they required cars to have ABS and traction control.I am not sure I agree that automatic breaking is ready for primetime, but taking control of a cars driving behavior is not new ground for the NHTSA.
- Parkave231 Collector's Edition hood ornament or GTFO.
- Dave M. Once again Mustang remains solely on the throne. But obviously the day of the ponycar has long passed....
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 . . . .
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.