Volkswagen to Buy Back Diesel Vehicles
Photo of 2015 Golf TDI engine courtesy of VW.
Volkswagen AG has agreed to pay up to $15.3 billion in a settlement with regulators that requires the German automaker to buy back vehicles at pre-scandal prices and set aside funding for cleaner technologies.
The deal was announced June 28 by the Department of Justice, Federal Trade Commission, Environmental Protection Agency, and California regulators. Volkswagen has also agreed to settle private claims under a civil action brought by plaintiffs, according to a release.
The settlement covers its 2.0L TDI engines in approximately 475,000 vehicles, including 460,000 VW vehicles and 15,000 Audi vehicles.
Volkswagen has set aside $10.033 billion for the buybacks and lease terminations. In addition, the automaker will set up a $2.7 billion environmental remediation fund and invest $2 billion in initiatives to promote the use of zero-emissions vehicles.
The company has also agreed to spend $603 million to settle state consumer protection claims in 44 states, the District of Columbia and Puerto Rico.
The agreements are subject to the approval of federal district court Judge Charles Breyer.
Read the company's full release here.