A deal reached between Volkswagen and the USA government over a global diesel emissions scandal that has rocked the automaker will include vehicle buyback offers and the possibility of repairs, says a federal judge.
Advertisement
VW will also cover all the costs to remove defeat devices from affected cars, which were found to be running with software that enabled them to cheat emissions tests back in 2015.
The tentative agreement announced by U.S. District Judge Charles Breyer did not include any additional financial compensation to owners, beyond the choice of having their vehicles repurchased or repaired.
The German Die Welt newspaper reported however that the deal involved paying each customer 5,000 dollars and VW would separately have to pay to fix their vehicles.
VW has reportedly reached agreement with the United States government to compensate owners. “This agreement will be incorporated into a comprehensive settlement in the coming weeks”.
Should US drivers get a deal like this, then other countries will no doubt try and broker a similar deal for their affected drivers.
It will include a fund for corrective efforts over the excess pollution, and Volkswagen will be required to commit other money to promote green automotive technology, said Breyer, who has not formally signed off on the deal yet.
VW lawyer Robert Giuffra said: “Volkswagen is committed to winning back the trust of its customers, its dealers, its regulators and all of America”. “These agreements in principle are an important step on the road to making things right”.
But the Justice Department said its criminal investigation into VW’s conduct will remain “active and ongoing”, despite the settlement.
Lawyers for the owners have said in court papers that if there’s no deal, they want an expedited hearing or a trial before the judge to get an order for “equitable relief” that would begin in July.
“It is the court’s expectation that the parties, in addition to finalizing the agreements that I just discussed, will work expeditiously on resolving these outstanding issues”, Breyer said.
Volkswagen spokeswoman Jeannine Ginivan said in a statement that customers do not need to take any action immediately.
As an example, one suit was filed by a couple who live in Big Bear, Calif., and who say they bought a 2010 Jetta “because they thought it was environmentally safe and provided good fuel efficiency” and because Volkswagen had advertised the car’s use of “clean diesel”.
Reuters first reported numerous details on Wednesday of the settlement including the buyback offer.
Advertisement
After months of deliberation, it appears that a settlement has finally been reached between Volkswagen and USA regulators over the diesel emissions scandal that rocked the entire industry last September. The cars can spew out harmful nitrogen oxide at 40 times the allowable limit, the person said.
