Federal judge approves Volkswagen emissions settlement

Tammy Harvey
May 13, 2017

Under the terms of Volkswagen's final deal, the auto manufacturer will buy back or fix some 80,000 three-liter diesel-engine vehicles that were equipped with defeat devices to mask excess emissions of nitrogen oxide - up to 40 times the amount allowed under federal law.

Owners of 3-liter models from 2009-2012 in the United States will be offered a correction to their cars so they meet pollution standards. Owners of the vehicles will receive between $7,000 and $16,000 from Volkswagen to fix the cars if the emissions remedies are approved. For instance, he said, owners of generation 2 vehicles will receive an average of $10,000 if Volkswagen can bring the cars back to the emissions standard at which they were initially advertised and sold.

Last year Breyer approved a separate settlement for VW to buy back 475,000 2-liter vehicles that emitted up to 40 times legally allowable emissions. The agreement ends most of the litigation over VW's cheating scandal, which became public in 2015.

U.S. District Judge Charles Breyer in San Francisco in February granted preliminary approval to the 3.0 liter deal and to a related Robert Bosch GmbH's settlement.

A federal judge in California on Thursday said he would approve a $1.2 billion settlement between Volkswagen (IOB: 0P6N.IL - news) and the U.S. authorities over the last 80,000 cars in the company's emissions-cheating scandal.


Thursday's settlement brings VW's spend on settling claims from owners, environmental regulators, USA states and dealers to $25 billion.

The lead attorney for consumer plaintiffs, Elizabeth Cabraser, praised the deal for compensating consumers and keeping polluting vehicles off the road.

The earlier settlement concluded in a $14.7-billion deal, finalized in October 2016, to lay to rest claims over some 500,000 two-liter diesel engine vehicles tainted by emissions-cheating software.

Volkswagen has reached an agreement with 3.0-liter V6 TDI owners for the recall and fix of Audi, Porsche and VW vehicles so equipped. Last month, former Deputy U.S. Attorney General Larry Thompson was tapped to serve as independent monitor of Volkswagen for three years under a Justice Department plea agreement over its excess emissions.Volkswagen Group of America Chief Executive Hinrich Woebcken said Davis will sit on the executive team and "has a proven record of furthering compliance-related goals through pragmatic solutions that achieve measurable results". It will also include costs for repairs and covering cancelled leases for the affected cars and SUVs as well as a fine of $225 million to help reduce the effect of pollution caused by these vehicles.

Other reports by Ligue1talk

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