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Volkswagen will begin buying back its 2.0L diesel models following approval Tuesday of a $14.7 billion settlement by a federal judge and expects to complete the process by the middle of November.
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Mercedes-Benz USA has reduced its 2017 diesel vehicle lineup for the U.S. market and plans to offer only a single diesel-powered model due to increased regulatory scrutiny resulting from the Volkswagen diesel scandal.
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Volkswagen may not resume sales of diesel models in the U.S. and plans to focus on electrified powertrains and SUVs in the coming years, the company's head of North American operations told fleet managers on Sept. 15.
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Volkswagen will begin offering its new models for lower prices and provide dealers with a broader product range in a move that could lower residual values if incentives remain high, one expert told Automotive Fleet.
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Volkswagen has been granted preliminary approval of the settlement agreement to owners and lessees of diesel vehicles found to violate clean-air laws.
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California air regulators have rejected Volkswagen AG's proposed remedy for its 3.0L clean-diesel engines that violate emissions laws as "substantially deficient," according to a July 13 letter to the automaker.
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Volkswagen has offered a generous compensation package to owners and lessees of diesel vehicles found to violate clean-air laws that applies to commercial and fleet users, according to a company spokeswoman.
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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.
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Volkswagen will begin equipping its gasoline-powered models with particulate filters starting in June of 2017 to reduce emissions by as much as 90%, the automaker has announced.
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A federal judge has extended the deadline for Volkswagen AG and environmental regulators to finalize a diesel emissions settlement until June 28.
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