Volkswagen and Robert Bosch have agreed to pay at least $1.6-billion to fix or buy back and compensate owners of affected Volkswagen, Audi and Porsche diesel vehicles.
The latest settlement means all owners of cheating diesel vehicles from the Volkswagen Group now have a resolution available. Previously, only the four-cylinder engines had a solution. The new settlement covers 78,000 Volkswagen Touareg, Porsche Cayenne and Audi Q7, A6, A7 and A8 vehicles equipped with a 3.0-liter V6 diesel engine from model years 2009 through 2016. Bosch’s settlement covers both the 2.0- and 3.0-liter engines.
Owners of affected 3.0-liter V6 vehicles will receive compensation from Volkswagen if emissions fixes are approved in a timely fashion. The compensation is between $7,000 and $16,000. The automaker will also pay an additional $500 if the fix affects the vehicle’s performance. Owners can also opt for a buyback, receiving $7,500 in addition to the value of the vehicle.
SEE ALSO: Buyback or Fix: VW Diesel Owners Weigh in on Settlement
If regulators do not approve a fix for all of the vehicles, Volkswagen’s costs could increase significantly. According to the U.S. Federal Trade Commission, Volkswagen could be forced to pay as much as $4.04 billion and more in individual owner compensation if no fix is approved. The company has agreed to buy back 2009-2012 Volkswagen and Audi 3.0-liter vehicles, but believes it can fix the 2013-2016 Volkswagen, Audi and Porsche 3.0-liter vehicles.
Bosch supplied the control software for the cheating diesel engines and will pay $327.5 million to compensate owners. Per the agreement, Bosch will pay $163.3 million to address 2.0-liter vehicles, with most owners getting $350 each. Most 3.0-liter owners can expect to receive $1,500 from Bosch since they will be splitting $113.3 million.
[Source: Automotive News]
