Volkswagen's efforts to solve the emissions scandal and to overcome its consequences came to a buy-back offer of almost 500,000 diesel cars that used sophisticated software to evade U.S. emissions rules. Volkswagen AG and U.S. officials have reached a framework deal under which the automaker would offer to buy back 2.0-liter diesel vehicles sold in the U.S. that exceeded legally allowable emission levels.
The cars concerned by this offer will include versions of the Jetta sedan, the Golf compact and the Audi A3 sold since 2009. At the same time it does not apply to the bigger, 80,000 3.0-liter diesel vehicles also found to have exceeded U.S. pollution limits, including Audi and Porsche SUV models.
As part of the settlement with U.S. authorities including the EPA, Volkswagen has also agreed to a compensation fund for owners. The compensation fund is expected to represent more than $1 billion. VW will pay cash compensation to owners who either sell their vehicles back or get them fixed. Owners are expected to have around two years to decide whether to sell back vehicles or get them repaired. It is not clear whether VW will be allowed to resell vehicles they buy back.
Some elements of the settlement are still being worked out and details are not expected to be announced at a court hearing. The final deal could still change before it is officially announced. A final settlement is also expected to include an environmental remediation fund to address excess pollution emitted by the U.S. vehicles since 2009. It is not clear if the deal will resolve the U.S. Justice Department's civil suit filed in January against VW or if VW will agree to pay a civil penalty. VW also faces ongoing criminal investigations by the Justice Department and other prosecutors around the world.
