U.S. District Court Judge Charles Breyer has signed off on Volkswagen’s plan to either buyback or fix nearly 88,500 vehicles equipped with the 3.0-liter TDI V6 engine.
According to Reuters, the automaker will spend at least $1.2 billion to repurchase or fix a handful of models from Audi, Porsche, and Volkswagen.
The settlement breaks affected models into two separate generations.
Generation One Vehicles consist of the Audi Q7 TDI and Volkswagen Touareg which are from the 2009-2012 model years. These models cannot be repaired to meet their originally certified emission standards, so owners will likely opt for a buyback or trade-in. However, there is an option for waiting for an EPA- and CARB-approved emissions modification which will net owners a compensation payment ranging from $7,755 to $13,880.
Generation Two vehicles are from the 2013-2016 model years and include VW Touareg; 2013-2015 Audi Q7; 2014-2016 Audi A6, A7, A8, A8L and Q5; and, 2013-2016 Porsche Cayenne 3.0-liter TDI models. Government regulators believe the vehicles can be fixed to meet their originally certified emissions. As a result, owners will need to have their vehicle fixed and they will receive a payment between $7,039 and $16,114.
The deadline to file a claim is December 31st, 2019 and vehicle buyback values will be calculated from September 18th, 2015 which is the date the allegations of emissions cheating became public.
In a statement, the lead counsel for the consumer plaintiffs in the case said “These agreements accomplish our goal of making the consumers harmed by Volkswagen’s emissions deception whole, while repairing or removing illegally polluting vehicles from our roads.” Elizabeth Cabraser added, “We believe the substantial compensation and steps to repair or remove polluting cars from the roads detailed in the settlements provide excellent value to consumers and hold Volkswagen and Bosch accountable for their breach of consumer trust.”
Besides approving the settlement for the 3.0-liter engine, Breyer granted approval to another settlement involving Bosch. It calls for the German supplier to pay $327.5 million to owners of affected vehicles. The agreement didn’t require Bosch to admit wrongdoing but it covers the company for its role in developing engines involved in the dieselgate scandal.