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Regulators Approve $14.7 Billion Volkswagen 2.0-Liter TDI Settlement

VW must buy back or fix 85 percent of cars by June 2019

VW must buy back or fix 85 percent of cars by June 2019

U.S. regulators have approved Volkswagen’s settlement regarding the company’s emissions-cheating 2.0-liter diesel vehicles. The plan was first proposed in June, and with it now finalized VW will pay a staggering $14.7 USD billion to buy back vehicles from owners, invest in programs to offset emissions, and fund electric infrastructure and vehicle development.

As previously reported, the settlement allows owners to sell back affected TDI cars for their pre-scandal trade-in value plus between $5,100 USD to $10,000 USD in compensation. Volkswagen has agreed to spend up to $10 USD billion to buy back as many as 475,000 vehicles equipped with 2.0-liter turbodiesel engine. As penance, the remaining $4.7 USD billion will be spent on environmental programs and electric vehicle development.

“Final approval of the 2.0L TDI settlement is an important milestone in our journey to making things right in the United States, and we appreciate the efforts of all parties involved in this process,” said President and CEO of Volkswagen Group of America Hinrich J. Woebcken in a statement. “Volkswagen is committed to ensuring that the program is now carried out as seamlessly as possible for our affected customers and has devoted significant resources and personnel to making their experience a positive one.”

Volkswagen will begin buying back vehicles in mid-November, a spokeswoman told Reuters. Nearly 340,000 owners have registered to participate in the settlement, with only about 3,500 opting out. VW must fix or buy back 85 percent of the 475,000 affected vehicles by June 2019 or it will have to pay additional fines. So far a fix has not been approved for the 2.0-liter engine, so unless one is approved Volkswagen must buy back all of the cars and destroy them. A settlement for the 3.0-liter TDI V-6, which was also found to have cheat devices, is still pending. Volkswagen Group says it’s working toward a resolution for its customers. A total of 85,000 vehicles in the U.S. are affected, and Audi was rumored to buy back 25,000 vehicles. A court conference regarding the TDI V-6 is scheduled for November 3.

Source: Volkswagen, Reuters