The deal, which still requires Judge Breyer’s approval, would give owners of the two-litre engine vehicles the option of a buyback.
Advertisement
“We take our commitment to make things right very seriously and believe these agreements are a significant step forward”, said Matthias Müller CEO of Volkswagen AG.
USA authorities broke the scandal when they exposed how VW had installed software into some of its diesel engines, enabling the vehicles to spew up to 40 times the permitted amounts of nitrogen oxides.
Bringing its VW, Porsche, and Audi vehicles with 3-liter engines in line with air quality promises could spare the automaker from having to buy them back.
“The money for California includes approximately $380 million for projects to reduce smog-producing pollution by incentivizing clean heavy-duty vehicles and equipment in disadvantaged communities, and $800 million in investments to advance California’s nation-leading zero-emissions vehicle programs”.
Idaho Attorney General Lawrence Wasden announced the penalty Tuesday, which is part of a $14.7 billion settlement that the German automaker reached with the federal government and 43 US states.
The $4.7 billion that will go toward mitigating the emissions issues is likely the biggest issue at this point as VW has yet to officially announce a fix for the diesel cheat.
“It’s time Volkswagen focuses on building clean electric vehicles”, Sierra Club California Chapter Director Kathryn Phillips said in a statement after the previously proposed settlement was rejected in March.
“Today’s announcement is within the scope of our provisions and other financial liabilities that we have already disclosed, and we are in a position to manage the consequences”.
VW still may face criminal charges and oversight by an independent monitor, similar to settlements of cases involving General Motors Co and Toyota Motor Corp for auto safety issues, a person briefed on the matter said.
German automaker Volkswagen has settled its legal battles in the United States and California. However, the vehicles produced higher rates of nitrogen than were allowed by law.
This week the FTC announced an agreement to settle claims that VW rigged 475,000 vehicles because they didn’t meet emissions standards.
Buy back or terminate the leases of eligible vehicles, or provide free emissions modifications (if approved by the EPA and CARB), and also make cash payments to affected current and certain former owners and lessees.
The settlement does not resolve civil lawsuits filed by owners against German auto supplier Robert Bosch GmbH, which was sued past year and accused of conspiring with Volkswagen to evade diesel emissions standards. Potential claimants under the class settlement do not need to contact Volkswagen or Audi, or their dealers, at this time.
Advertisement
Pending court approval, VW expects to begin issuing payments to owners and possibly modifying the 4-cylinder diesel cars this fall.
