VW reaches another settlement in scandal
VOLKSWAGEN agreed on Tuesday to buy back or fix the remaining diesel cars caught up in its emissions cheating scandal, at an expected cost of about $1 billion, in what has become one of the United States’ largest consumer classaction settlements ever.
The settlement – which involves Volkswagen and the federal government, and covers about 80,000 Volkswagen, Audi and Porsche cars – was announced after last-minute negotia- tions that forced a California judge to reschedule hearings several times.
Owners of those cars will also receive compensation from Volkswagen, although the company and lawyers for the car owners were still negotiating the exact terms. US District Judge Charles R Breyer in California, who is overseeing the case, said compensation would be “substantial”.
The agreement addresses vehicles that were not included inVolkswagen’s agreement in June to pay nearly $15 billion to settle claims about a separate batch of 475,000 Volkswagen vehicles with smaller engines.
Some details were still being worked out on Tuesday by the parties, which include Volkswagen, the US Environmental Protection Agency, the California Air Resources Board and the US Justice Department.
“This settlement is about taking pollution out of the air we breathe,” said Cynthia Giles, the EPA’s assistant administrator for enforcement and compliance assurance.
“It’s also about showing what a strong EPA enforcement presence means for those who may break the law,” Giles said, highlighting the agency’s record of pursuing those who pollute illegally. Questions have been raised about how tough an enforcer the EPA will be under the incoming administration of president-elect Donald Trump.
Altogether, Volkswagen’s civil settlements are the largest ever in the United States by an automaker. The agreement in June included a $2.7 billion payment into an EPA fund to offset the cars’ excess diesel emissions, and an additional $2 billion investment in zero-emission vehicle projects.
The latest settlement for the 80,000 cars is similar. But Volkswagen has told the government that it believes that about 60,000 of them – the newer models – can be fixed to comply with federal emissions standards.
The agreement “is another important step forward in our efforts to make things right for our customers”, Hinrich Woebcken, CEO of Volkswagen Group of America, said in a statement. He said the company was committed to resolving outstanding claims “as quickly as possible”.