$15 Billion VW Diesel Settlement Clears 1st Hurdle

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Volkswagen’s cleared the first hurdle in its nearly $15 billion diesel scandal settlement.

Tuesday, a federal judge gave preliminary approval to the deal that gives 475,000 VW TDI owners thousands of dollars in compensation for vehicles that don’t meet emissions requirements. The automaker rigged them with software to cheat emissions standards. 

The deal covers the following 2.0-liter TDI models:

  • 2013-2015 Beetle
  • 2010-2015 Golf
  • 2009-2015 Jetta
  • 20120-2015 Passat
  • 2010-2013, 2015 Audi A3

VW owners won’t start seeing the compensation though until October, when the deal is finalized. Owners of impacted TDI vehicles will each receive between $5,100 to $10,000. They’ll also get to choose between a buyback or a fix, if one approved by then. Owners who owe more than their vehicles are worth could qualify for loan payoffs. VW owners who don’t like the options can also opt out and pursue their own legal action.

In all, VW agreed to pay $10 billion in compensation under the deal, $2.7 billion for unspecified environmental mitigation and another $2 billion to promote zero-emissions vehicles.

The deal does not cover about 85,000 Volkswagens and Audis with 3.0-liter engines.


Wolfsburg / Herndon VA 2016-07-26 

Volkswagen AG announced today that Judge Charles R. Breyer of the United States District Court for the Northern District of California has granted preliminary approval of the settlement agreement reached on June 28 with private plaintiffs represented by the Plaintiffs’ Steering Committee (PSC) to resolve civil claims regarding eligible Volkswagen and Audi 2.0L TDI vehicles in the United States.

Individual class members will now receive notification of their rights and options under the agreement. Volkswagen will begin the settlement program immediately after the Court grants final approval to the class settlement, which is anticipated on October 18, 2016.

Under the proposed settlement, eligible customers will have two choices:  (1) they can sell back their vehicle to Volkswagen or terminate their lease without an early termination penalty, or, (2) keep their vehicle and receive a free emissions modification, if approved by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). Customers who select any of these options under the settlement will also receive a cash payment from Volkswagen. More information about the program can be found at www.VWCourtSettlement.com.

Volkswagen appreciates the constructive engagement of all the parties, under the direction of Judge Breyer and with the active participation of Special Master Robert S. Mueller III, as the settlement approval process moves forward. The parties believe that the proposed settlement program will provide a fair, reasonable and adequate resolution for affected Volkswagen and Audi customers.

Notes to Editors

The following 2.0L TDI engine vehicles are included in the proposed 2.0L TDI settlement program:

VW Beetle            VW Golf            VW Jetta             VW Passat           Audi A3

2013- 2015           2010-2015        2009-2015         2012-2015          2010-2013; 2015

Volkswagen continues to work closely with the EPA and CARB on an approved emissions modification for each of the 2.0L TDI engine vehicles listed above. Volkswagen is also trying to secure approval of a technical resolution for affected vehicles with a V6 3.0L TDI engine as quickly as possible.

In addition to the proposed class settlement, Volkswagen has entered into a separate Consent Decree with the United States Department of Justice (acting on behalf of the EPA), CARB and the California Attorney General and a separate Partial Stipulated Order for Permanent Injunction and Monetary Judgment with the United States Federal Trade Commission regarding 2.0L TDI vehicles. Volkswagen has also resolved current and potential consumer protection claims of 44 U.S. states, the District of Columbia and Puerto Rico.

The agreements are not an admission of liability by Volkswagen. By their terms, they are not intended to apply to or affect Volkswagen’s obligations under the laws or regulations of any jurisdiction outside the United States. The company continues to work to resolve other outstanding legal matters in the United States.

Image Copyright: Shutterstock/Taina Sohlman
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