The VW Group announced it has reached a settlement agreement for fixing or buying back vehicles powered by the rigged 3.0-litre TDI V6 engine.
Around 78,000 cars are affected by the issue and include the VW Touareg, the Audi Q7-A6-A7-A8-A8L-Q5, and the Porsche Cayenne.
VW has agreed to pay up to $1.2 billion in total, assuming that 100 per cent of the affected first-gen Touareg and Audi Q7s will participate in the program and they will be able to offer an eligible fix for the rest of the affected models.
VW will give owners of the fixed vehicles a compensation that ranges from $7,000 to $16,000, if the proposed fix is approved and another $500 if the fix affects the car’s performance. Customers who will participate in the buyback process will receive $7,500 on top of the value of their car.
However the company could face a dramatic increase in the costs related, if US regulators don’t approve the proposed fix for the vehicles. AutoNews reports that VW could pay as much as $4.04 billion, without taking into consideration the individual owner compensation if the above happens.
VW has also agreed to pay $225 million in order to offset the extra pollution coming from the 3.0-litre models, on top of the agreed $2.7 billion it will pay for the affected 2.0-litre models.