A settlement between US regulators and Volkswagen will have the automobile manufacturer buying back approximately 20,000 VW, Audi and Porsche 3.0-liter diesel vehicles. The scandal began last year when Volkswagen was caught fitting their vehicles with software used to fool emissions tests. The U.S. Department of Justice reached an agreement with VW for 475,000 2.0-liter diesel cars, giving owners the option to choose a buyback for the full trade in price and reimbursing owners $5,100 to $10,000 each, depending on the age of the car and if they owned it prior to Sept. 18 of last year.
This recent settlement concerns the remaining 80,000, 2009-2016 VW, Audi and Porsche 3.0-liter diesel vehicles. According to U.S. District Judge Charles Breyer, the settlement will include a buyback option for approximately 20,000 owners and a substantial compensation on top of any repairs or a buyback. Volkswagen said they believe they can modify the other 60,000 vehicles into compliance with pollution regulations and will not offer a buyback if they can.
In total, Volkswagen will spend up to $10 billion compensating consumers. This includes $2.7 billion for environmental mitigation and $2 billion to promote zero-emissions vehicles. In a separate court filing, Volkswagen has agreed to add at least three additional electric vehicles in California by 2020 and must sell an average of 5,000 electric vehicles annually through 2025. Volkswagen also agreed to pay California’s state air board compensation for $25 million.