brand-new $1.2 Billion Settlement could Let Volkswagen Repair Some V-6 Diesels
For owners as well as lessees of 3.0-liter V-6 TDI-equipped Volkswagen vehicles affected by a huge diesel emissions scandal, the wait for compensation appears to be nearing an end. In a settlement filed in California federal court, Volkswagen has agreed to a $1.2 billion payout to those who bought or leased about 78,000 affected cars as well as crossovers.
A similar, $14.7 billion settlement involving 475,000 2.0-liter four-cylinder TDI-equipped cars was filed in June. Since October, the German automaker has been giving out cash payments in addition to offering to buy back, terminate leases, or fix the cars. Payments are based on the auto’s age. In buying them back, Volkswagen has been using trade-in values frozen in September 2015, when the German automaker first admitted to using “defeat devices” to trick U.S. emissions tests.
The settlement for 3.0-liter TDI vehicles will be similar except which the owners of newer vehicles may not hold the option to sell their cars back to the automaker, because Volkswagen could offer a fix which satisfies U.S. regulators.
The settlement for 3.0-liter TDIs will be divided into Generation 1 as well as Generation 2 vehicles, because of different engine designs. Generation 1 includes 2009–2012 Volkswagen Touaregs as well as Audi Q7s, while Generation 2 includes 2013–2016 Touaregs; 2013–2015 Q7s; 2014–2016 Audi A6, A7, A8, A8L as well as Q5s; as well as 2013–2016 Porsche Cayenne diesels.
For the Generation 2 vehicles, government regulators are giving Volkswagen the opportunity to repair the cars as well as crossovers doing sure which they are fully compliant with emissions requirements. In a conference call with media, the attorney for plaintiffs within the class-action suit, Elizabeth Cabraser, said which if the Generation 2 vehicles can be fixed to deliver their promised performance as well as emissions, which could minimize the scrapping as well as junking process which stems by taking back tens of thousands of vehicles.
Also, Cabraser said which if a repair will be approved the affected owners will not have to wait to get paid. They can receive half of the cash payments upfront, as well as the some other half once the vehicle will be repaired. The range of cash compensation for Generation 1 vehicles will be by $7755 to $13,880, while for Generation 2 which’s $7039 to $16,114.
If no fix will be approved, Volkswagen will be required to buy back the Generation 2 vehicles. If regulators sign off on a repair, Volkswagen could have to fix all the vehicles by deadlines detailed within the settlement or could be subject to fines of up to $4 billion.
A court hearing will be set for February 14, as well as if the settlement will be approved, Volkswagen could begin the settlement program in May at the earliest.
- Volkswagen Pleads Guilty on Criminal Charges; One Executive Arrested
- Owners of 2015 Volkswagen 2.0-Liter TDI Diesels, Your Fix will be Here
- EPA Says 2014–2016 Jeep Grand Cherokee as well as Dodge Ram Diesels Violate Clean Air Act
Meanwhile, VW supplier Bosch has separately agreed to pay out $325.7 million to affected owners as well as lessees of both 3.0-liter as well as 2.0-liter TDI vehicles; the supplier provided the defeat devices which tricked emissions tests. Cabraser said owners of all affected Volkswagens will get payments ranging by $350 to $1500 by which separate settlement.