Volkswagen concludes new deal for US ‘diesel-gate’ vehicles

VW has reached an agreement with the US Department of Justice over the 3-litre V6 powered vehicles affected by the diesel emissions scandal.

Through the California Air Resources Board and the California Attorney General, Volkswagen AG and Volkswagen Group of America will resolve civil claims regarding approximately 83,000 affected 3.0L TDI V6 diesel engine vehicles in the United States.

The agreement, subject to the approval of the United States District Court, sees a proposed agreement which would allow VW to recall more than 75 percent of affected 3.0L TDI V6 vehicles to bring them into compliance with the emissions standards to which they were certified.

Volkswagen has also reached agreement with the Court-appointed Plaintiffs' Steering Committee (PSC) on substantial aspects of the monetary relief that eligible owners and lessees would receive, and the parties are working to resolve the remaining issues. Details of these discussions remain subject to a confidentiality order of the Court.

Under the terms of the proposed Consent Decree, Volkswagen has agreed to: Recall approximately 63,000 affected 2013-2016 Model Year Volkswagen, Audi and Porsche 3.0L TDI V6 vehicles with so-called Generation 2 engines to bring them into compliance with the emissions standards to which they were certified, if appropriate modifications are approved by EPA and CARB. If Volkswagen is unable to meet this requirement, it will offer to buy back or terminate the leases of these vehicles and may also seek approval by EPA and CARB to offer customers a modification to substantially reduce their nitrogen oxide (NOx) emissions.

Volkswagen will have to also: Buy back or terminate the leases of approximately 20,000 affected 2009-2012 Model Year Volkswagen and Audi 3.0L TDI V6 vehicles with so-called Generation 1 engines or, if approved by EPA and CARB, modify the vehicles to substantially reduce their NOx emissions so as to allow eligible owners and lessees to keep them.

Volkswagen will have to contribute $225 million to the environmental remediation trust that is being established under Volkswagen's 2.0L TDI settlements in the United States to fully mitigate the lifetime NOx emissions of the affected 3.0L TDI V6 vehicles. As part of its agreement with the State of California, Volkswagen will also pay $25 million to CARB to support the use of zero emissions vehicles (ZEVs) in the State.

The terms of the proposed agreement will be effective and final only after approval by the Court. At the earliest, approval will occur during spring of 2017. Affected 3.0L TDI V6 customers do not need to take any action at this time, and can visit here for more information.