Volkswagen AG (VOWG_p.DE) plans to offer a new proposal to fix 85,000 polluting 3.0 liter vehicles after regulators rejected an earlier plan, a Justice Department lawyer said Tuesday.
Advertisement
The move allowed VW and its attorneys to begin collecting data from the auto owners who are set to receive compensation as part of the settlement.
“It’s all about choice”, lead plaintiffs’ attorney Elizabeth Cabraser said Tuesday, adding that diesel drivers thought they were making a decision to buy an environmentally friendly vehicle but “were deprived of that choice”.
US District Judge Charles Breyer in San Francisco set an Oct 18 hearing for final approval. Those with leased vehicles will receive an average of $3,500 in compensation and can terminate their leases.
Breyer is expected to grant final approval to the settlement on October 18, according to Volkswagen.
The settlement also includes $2.7 billion for unspecified environmental mitigation and an additional $2 billion to promote zero-emissions vehicles.
500,000 USA diesel owners and government regulators for tis over polluting vehicles in the country.Officials said that the preliminary approval will allow attorneys to notify vehicle owners about the terms of the deal. “It’s not a simple settlement”, Breyer stated in court.
“I want these decisions to be fully informed”, Judge Breyer said.
While on the other hand, prosecutors in the German city of Braunschweig said they had widened their probe into diesel emissions cheating, with 21 current and former Volkswagen staff under investigation.
Advertisement
Volkswagen said the settlement that was ratified on Tuesday includes the following diesel cars: 2013- 2015 Beetle; 2010-2015 Golf; 2009-2015 Jetta; 2012-2015 Passat; and 2010-2013 and 2015 Audi A3. The revelation comes after VW’s admission in September that it rigged emissions tests for four-cylinder diesel engines on 11 million cars worldwide, including nearly 500,000 in the U.S. It has already set aside 6.7 billion euros ($7.4 billion) to cover the costs of recalling those vehicles. Joshua Van Eaton, an attorney with the Justice Department, told the court that regulators are working closely with Volkswagen on a technical fix and should have more information on those vehicles at an August 25 hearing. The suit, seeking up to $450 million in civil penalties for alleged violations of state environmental laws, claims Volkswagen’s emissions cheating dates back more than a decade and arose from deliberate efforts by employees to mislead consumers and regulators.
