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View more storiesOn Tuesday, US District Judge Charles Breyer announced that Volkswagen Group and regulators had reached a $1 billion settlement over a portion of the 80,000 3.0L diesel vehicles that are still driving on US roads equipped with illegal emissions-system-defeating software.
VW Group says it will buy back 20,000 of those cars.
The German company hopes to offer a fix for the remaining 60,000, although approval for the fix is still pending the approval of the Environmental Protection Agency (EPA).
This tracks with earlier rumors that VW Group would buy back 20,000 older Audi and VW SUVs due to the more complicated nature of the fix that would be required to make those cars compliant with federal emissions standards.
Those same rumors suggest that the remaining 60,000 cars could be brought into compliance with a mere software fix, potentially saving VW Group billions in buyback costs or more involved fixes.
Cynthia Giles, an EPA assistant administrator, said that the total cost for any fixes, buybacks, and additional compensation from VW Group for the 3.0L diesels will total around $1 billion, according to Reuters.
There was no word on how much additional compensation owners of 3.0L vehicles might expect from VW Group.
In June the German automaker agreed to a much larger settlement—almost $15 billion over some 475,000 2.0L diesel vehicles that also had emissions-system-defeating software on them.
Those VW and Audi owners are entitled to between $5,100 and $10,000 in additional compensation on top of a fix or a buyback of their cars.
Today, VW Group agreed to pay the EPA $225 million to mitigate the cost of the excess pollution that the company’s 3.0L vehicles caused.
In a separate agreement with the state of California, VW Group also agreed to sell an average of 5,000 electric vehicles in the state through 2025 and to pay the Air Resources Board $25 million.
Due to rules set in the ’60s, California is the only state that is allowed to set air regulation standards more stringent than the EPA’s.
With VW’s new settlement, Judge Breyer also announced that Volkswagen’s parts maker, Robert Bosch GmbH, had agreed to a settlement with regulators.
Bosch has been accused of furnishing VW Group with components that it knew would contribute to circumventing US pollution laws.
Bosch did not say how much it had settled for, and neither did it accept liability or admit guilt on Tuesday. Reuters reported that the settlement is expected to be worth more than $300 million.
Just yesterday, VW Group reached a settlement with Canadian antitrust authorities for $1.57 billion. One hundred and five thousand of the affected diesel vehicles had been sold in Canada when news of VW Group’s emissions cheating broke. Ottawa authorities have accused the company of making false and misleading claims to customers about the eco-friendly aspects of its cars.