Volkswagen strikes deal to address 80000 polluting diesel vehicles, judge says – CNBC
A U.S. judge said Tuesday Volkswagen has agreed to address 80,000 polluting diesel vehicles, Reuters reported.
Reuters said Volkswagen agreed to offer buybacks for 20,000 polluting diesel vehicles or have them fixed if regulators approved. Owners of 3.0-liter vehicles will receive a “substantial compensation” as part of the settlement, the news service said.
The German automaker faced fines after it was caught last year cheating on American air pollution tests by the U.S. Environmental Protection Agency. The scandal has damaged the company’s reputation and hurt its sales.
The report comes after a series of delays this week to give the sides more time to negotiate.
Volkswagen previously reached a deal for the other 475,000 polluting vehicles in the scandal, according to The Associated Press. That deal gives owners of 2-liter diesel cars the option to have the German automaker buy back their vehicle regardless of its condition.
Volkswagen has also agreed to pay California’s Air Resources Board $25 million as part of the settlement, according to court filings, and will sell three electric vehicles in the state including SUVs by 2019.
The U.S. Justice Department says the automaker will spend an additional $225 million to offset diesel emissions, according to Reuters.
U.S. District Judge Charles Breyer said German company Robert Bosch, which produced the software for Volkswagen diesels, has agreed in principle to settle civil allegations made by U.S. diesel vehicle owners. The settlement was expected to be worth more than $300 million, Reuters reported.
—Reuters and AP contributed to this report.