VW Reaches Settlement on 3.0-Liter Diesels

A federal judge has granted final approval on a settlement announced earlier this year for 3.0-liter diesel vehicles. In the deal, Volkswagen agreed to pay at least $1.22 billion to fix or buy back 3.0-liter diesel vehicles equipped with cheat devices.

VW plans to fix model-year 2013-2016 vehicles with “Generation 2” 3.0-liter engines. Owners of these vehicles will receive this repair in addition to cash compensation ranging from $7,039 to $16,114. Those who drive older Volkswagen cars with the “Generation 1” diesel engine will have the option to sell their vehicles back to VW as they cannot be repaired to be compliant with their originally certified emissions standards. These customers can also receive a government approved emissions modification in addition to a payout of $7,755 to $13,880.

The money VW ends up paying will depend on whether or not regulators approve a repair for Generation 2 vehicles. If regulators don’t approve repairs for all vehicles by the deadlines stated in the settlement agreement, VW could end up paying as much as $4.04 billion.

Last year, VW reached a settlement to pay $14.7 billion to buy back 2.0-liter diesel vehicles. An estimated 475,000 Volkswagen cars are equipped with these engines, compared to just 80,000 cars that have the 3.0-liter V-6 diesel unit.

Despite its diesel troubles, Volkswagen boss Matthias Muller revealed at the company’s Annual General Meeting that “diesel will remain indispensable for the foreseeable future.” He noted the company is investing 10 billion euros in internal combustion engine technologies by 2022, although the company is also making a push for electrification in its lineup.

Source: Reuters, Volkswagen, Plantiffs’ Committee for Volkswagen “Clean Diesel” Litigation

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