After long negotiations and a last minute extension, Volkswagen has finally reached an agreement with regulators on how to compensate owners of vehicles equipped with the 3.0-liter TDI engine, made up of mostly Audi and Porsche SUVs.
Judge Breyer said that the owners will receive “substantial compensation,” but that some issues still need to be resolved. As a result, he set another hearing on Thursday for an update, when more details are expected on exactly what owners will get. An update was expected last Thursday, but Judge Breyer gave VW and regulators an extension so that they could finalize the agreement.
The reports that Volkswagen will offer to buyback the 20,000 oldest vehicles, and fix the 60,000 newest ones—saving themselves a substantial sum of money in the process. Overall, the 3.0-liter diesel fix will end up costing a total of about $1 billion when you factor in buybacks, fixes and diesel offsets.
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reports that VW will pay a $225 million fine to offset emissions from the excessively emitting vehicles. That fine is on top of another $2.7 billion fine that VW agreed to pay in its 2.0-liter TDI settlement.
In addition, Volkswagen has reportedly agreed to pay the California Air Resources Board $25 million and offer three all-electric vehicles, including an SUV, in the state by 2020 with the aim of selling 5,000 of them per year.
[Sources: Associate Press, Automotive News]
