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Volkswagen and U.S. Dealers to Settle in Diesel Cheating Debacle

Volkswagen and U.S. Dealers to Settle in Diesel Cheating Debacle

By Philly Murtha, August 25, 2016
Volkswagen of America today announced that it has agreed to provide its 650 U.S. VW dealerships with cash payments and additional benefits as compensation for losses related to a recall of as many as 600,000 diesel-powered vehicles with emissions cheating software. VW, Audi and Porsche dealers already have been prohibited from selling new diesels and certified pre-owned (CPO) diesel vehicles in the United States for nearly a year. Through July, VW sales in the United States fell 14% from a year ago, according to data collected by J.D. Power and auto forecasting partner LMC Automotive.

Details of a deal should be finalized at the end of September, according to Volkswagen officials after a court hearing in San Francisco. Meanwhile, a U.S. District Court judge in California has ordered the automaker to fix or buy back 85,000 of the premium Audi, Porsche, and VW models with 3.0-liter diesel polluting engines. In June, VW agreed to pay up to $15.3 billion to buy back up to 475,000 vehicles with 2.0-liter diesel engines and address claims by regulators and 44 states, say news reports.

Meanwhile, current owners of the recalled diesel cars and SUVs will be able to sell back their vehicle at a value determined by the National Automobile Dealers Association (NADA) that aligns with vehicle value at the time of the announced cheating scandal in September 2015. Otherwise, owners can keep their vehicles and wait to have it fixed to meet regulators’ emissions standards, which is still pending.

In addition, current owners will receive compensation—$5,100-$9,800 depending on the vehicle and model year—according to the Associated Press.

Models recalled by the U.S. Environmental Protection Agency (EPA) to be fixed and made compliant with federal emissions standards include 2009-2016 cars and SUVs with 2.0- and 3.0-liter diesel engines.

Owners can check for updates on VW’s site (https://www.vwdieselinfo.com/) and on the EPA’s website (http://www.epa.gov/vw).

For more information about the settlement program, visit: www.VWCourtSettlement.com or www.AudiCourtSettlement.com.
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