Volkswagen emissions settlement approved: $1.2B in buybacks, repairs, cash

Randall Padilla
May 13, 2017

On Thursday, May 11, 2017, a federal judge in San Francisco approved a $1.2 billion settlement with owners of about 88,500 Volkswagens with 3-liter diesel engines rigged to cheat on emissions tests. "We have made things right with.the environment, with consumers, and with regulators", he said.

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.

The development brought the scandal-plagued German auto giant a step nearer to closing the book on the "dieselgate" affair, which rocked the company for almost two years since it admitted configuring some 11 million cars worldwide to evade emissions testing.

Volkswagen has agreed to buy back, offer trade-in credit of equal value for or terminate the leases of approximately 20,000 eligible older Volkswagen and Audi 3-liter diesels from from the 2009-2012 model years that have been dubbed "Generation 1" vehicles. "We have to get these cars fixed or off the road and give consumers confidence they know how they're going to go forward with perhaps the biggest investment in their life or perhaps the most necessary - having a vehicle'".

Addressing a handful of objectors to the settlements, Breyer said this is a case in which "the perfect" should not become "the enemy of the good".

VW has also agreed to a separate settlement with California that requires it to pay $25 million to the California Air Resources Board to support efforts to boost the use of zero-emissions vehicles by July 1. Another objector said the Bosch settlement unfairly pays more to three-liter-engine vehicle owners compared to two-liter-engine auto owners.

"By entering into the settlement, Bosch neither acknowledges the facts as alleged by the plaintiffs nor does Bosch accept any liability", the company said in a statement earlier.

Generation Two vehicles are from the 2013-2016 model years and include VW Touareg; 2013-2015 Audi Q7; 2014-2016 Audi A6, A7, A8, A8L and Q5; and, 2013-2016 Porsche Cayenne 3.0-liter TDI models. Six of its executives also face criminal charges for their roles in the scheme.

Thursday's settlement brings VW's spend on settling claims from owners, environmental regulators, U.S. states and dealers to $25 billion. Though it admitted no wrongdoing, Bosh still shelled out a paltry $327.5 million to end litigation.

"We believe the substantial compensation and steps to fix or remove polluting cars from the roads detailed in the settlements provide excellent value to consumers" and hold Volkswagen to account, she said in a statement.

Other reports by AllAboutTopnews

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