Volk­swa­gen has fix for more cars in emis­sions scan­dal

Windsor Star - - FINANCIAL POST -

SAN FRAN­CISCO U.S. and Cal­i­for­nia reg­u­la­tors ap­proved a fix for more Volk­swa­gen cars caught up in the com­pany’s emis­sions cheat­ing scan­dal, giv­ing their own­ers an op­tion to keep the ve­hi­cles in­stead of hav­ing the au­tomaker buy them back, reg­u­la­tors an­nounced Fri­day.

The mod­i­fi­ca­tion to bring the ve­hi­cles into com­pli­ance with U.S. emis­sions stan­dards ap­plies to about 84,000 Pas­sats with au­to­matic trans­mis­sion from model years 2012 to 2014, ac­cord­ing to Volk­swa­gen.

Reg­u­la­tors pre­vi­ously ap­proved a fix for an­other 67,000 2-litre Volk­swa­gens.

More than 550,000 ve­hi­cles in the U.S. were im­pli­cated in the scan­dal.

“Today’s ap­proval is an­other im­por­tant step in ef­forts to re­pair the en­vi­ron­men­tal harm caused by th­ese ve­hi­cles,” Richard Corey, ex­ec­u­tive officer of the Cal­i­for­nia Air Re­sources Board, said

The au­tomaker has ac­knowl­edged that the ve­hi­cles were pro­grammed to turn on emis­sions con­trols dur­ing gov­ern­ment lab tests and turn them off while on the road.

The EPA al­leged the scheme let the cars spew up to 40 times the al­low­able limit of ni­tro­gen ox­ide, which can cause res­pi­ra­tory prob­lems in hu­mans.

The af­fected ve­hi­cles fall into two classes — 2 litres and 3 litres.

The Ger­man au­tomaker reached a deal worth up to US$15 bil­lion for 475,000 2-litre diesel cars that of­fered own­ers the op­tion of re­pairs or a buy­back and ad­di­tional compensation of US$5,100 to US$10,000 each.

Reg­u­la­tors are eval­u­at­ing a pos­si­ble fix for an­other 49,000 of th­ese ve­hi­cles, ac­cord­ing to the Cal­i­for­nia Air Re­sources Board.

A fed­eral judge in San Fran­cisco ear­lier this week signed off on a sep­a­rate, US$1.2 bil­lion agree­ment with own­ers of 88,500 Volk­swa­gens with 3-litre diesel en­gines.

Volk­swa­gen is of­fer­ing buybacks to some of those own­ers, but be­lieves it can re­pair newer mod­els.

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