VW, DOJ Reach Settlement, Could Be As High As $10 Billion
Settlement Includes Buybacks, Could Start in July
The long-awaited settlement between Volkswagen of America and the U.S. Department of Justice has finally been settled, according to a report from Reuters. As expected, it will be an expensive one for VW and could ultimately total more than $10 billion. The agreement includes buyback offers for the more than 600,000 affected cars and “substantial compensation” for owners. The agreement does not cover the estimated 90,000 cars and SUVs powered by the 3.0L TDI V-6. The settlement for the V-6 models is expected to be addressed “expeditiously,” according to U.S. Judge Charles Breyer. The deal is also expected to settle the more than 600 class-action lawsuits against Volkswagen.
The U.S. government and VW will now have until June 21 to complete a consent decree that will be open to public comment and will need final judicial approval before taking effect. Part of the settlement is expected to include a commitment by VW to promote “other green automotive technologies.” The settlement does not preclude the U.S. government from continuing its investigation into VW’s other activities and actions. The DOJ has an ongoing investigation into VW separate from the settlement. A VW spokesperson said the company intends to “compensate its customers fully and remediate any impact on the environment from excess diesel emissions.” The earliest any vehicle buybacks will begin is July, after final judicial approval of the settlement.