Judge approves emissions-cheating settlement for 3-liter VWs

Posted May 13, 2017

According to Reuters, the automaker will spend at least $1.2 billion to repurchase or fix a handful of models from Audi, Porsche, and Volkswagen.

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.

In October, the court endorsed a record-setting $15 billion compensation deal that covered the approximately 480,000 2.0-liter Volkswagen diesel cars also equipped with software created to defeat emissions tests.

Gen 1 owners who opt to sell their vehicles back will receive payments that will be calculated based on the pre-crisis September 2015 values of their vehicles, in concert with additional monetary compensation based on other factors, as with the 2.0-liter cars.

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As part of the $1.22 billion settlement, VW will purchase back or fix approximately 20,000 of the "Generation 1" models, consisting of 2009-12 model year VW Touareg and Audi Q7 models, and fix more than 58,000 "Generation 2" VW, Porsche and Audi vehicles from the 2013-16 model years.

Resolution of the civil case comes after another federal judge ordered the German auto maker in April to pay a $2.8 billion criminal fine as part of a plea deal with USA prosecutors.

A federal judge said Thursday that he would approve Volkswagen Group's $1.2 billion buybacks-and-repairs settlement with owners of six-cylinder diesel engine vehicles that were not included in the company's separate deal for auto owners.

U.S. District Judge Charles Breyer gave the deal final approval during a hearing Thursday.

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"These agreements accomplish our goal of making the consumers harmed by Volkswagen's emissions deception whole, while repairing or removing illegally polluting vehicles from our roads", Elizabeth Cabraser, the plaintiffs' lead attorney, said in a statement.

The judge also approved a settlement related to Bosch, the German vehicle component supplier whose software VW used in its emissions cheating.

The U.S. government has indicted six present and former Volkswagen executives and charged the company with three criminal felony counts for what regulators called a 10-year conspiracy to rig hundreds of thousands of diesel cars to cheat U.S. emission standards. Regulators have said that in normal driving they emitted up to 40 times more smog-causing nitrogen oxide than the legal limit. This could take the cost of the settlement up to $4 billion. Volkswagen has admitted to installing the software on almost 600,000 diesel-powered vehicles in the USA and some 11 million vehicles globally.

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