Judge Approves Settlement for U.S. Volkswagen TDI Owners
Settlement for V-6 TDI Owners Still Pending
U.S. District Judge Charles Breyer approved Volkswagen’s $14.7 billion settlement with regulators and owners of 2009-2015 Volkswagen and Audi brand vehicles equipped with the 2.0L I-4 TDI turbodiesel engine to put the company on the pathway of rectifying its image in the U.S., Reuters reports. Under the terms of the settlement, owners that opt for the buyback option will receive their vehicles fair market value as of September 2015 and up to an additional $5,000-$10,000. The judge dismissed challenges claiming the settlement wasn’t sufficient. Buybacks for the 2.0L models will begin in mid-November.
Approximately $10 billion of the settlement will go toward buybacks and owner compensation, and $4.7 billion will go to programs to offset emissions and clean vehicle initiatives, including $2 billion over 10 years for building an electric vehicle charging infrastructure across the U.S. VW will be permitted to repair affected vehicles pending regulatory approval of the fix. So far, the majority of owners have opted for buybacks.
To help expedite the process, VW has hired 900 agents, including one at each dealer, to handle vehicle buybacks. Owners of the Volkswagen Touareg SUV, Audi Q5 and Q7, and Porsche Cayenne equipped with the 3.0L TDI V-6 are not covered by this settlement. A settlement for those vehicles is still pending.