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Volkswagen Submits Settlement for U.S. Diesel Owners; Sets Aside Clean Air Funds

Volkswagen Submits Settlement for U.S. Diesel Owners; Sets Aside Clean Air Funds

By Philly Murtha, June 28, 2016
This week, Germany’s Volkswagen AG (VW Group) presented settlement agreements in U.S. District Court in San Francisco that will fund buybacks and early lease terminations, apply approved fixes, and provide cash payments to owners of some 475,000 VW and Audi vehicles in the United States equipped with 2.0-liter diesel engines that contain illegal “defeat device” software that misstates NOx exhaust emissions, according to the company.

Volkswagen officials said in a statement that they have reached a settlement with the U.S. Department of Justice, the State of California, other federal bodies, and plaintiffs to resolve civil claims with buybacks, termination of leases, and emissions modifications approved by regulators plus restitution cash payments in the amount of $10.033 billion. A separate settlement with more than 44 states that will cost $600 million also was announced, according to news reports.

In addition, VW agrees to set aside another $4.7 billion to help remediate excess NOx emissions and to build awareness for a zero-emission vehicle (ZEV) infrastructure in the United States. Altogether, VW Group could pay more than $15 billion to settle charges with owners and federal and state government bodies that will include monies to push forward clean air initiatives and boost cleaner fuel technologies. The company continues to work out a resolution for affected vehicles with 3.0-liter V-6 diesel engines.

According to Automotive News, each owner of one of the recalled diesel vehicles will receive the repurchase price of the vehicle plus $5,100-$10,000, depending on the model and year. The settlement is one of the largest consumer buyback programs in U.S. history.

The following 2.0-liter TDI engine vehicles are included in the proposed 2.0L TDI settlement program:

  • Volkswagen Jetta (2009-2015) and Jetta Sportwagen (2009-2014)
  • Volkswagen Beetle and Beetle Convertible (2013-2015)
  • Audi A3 (2010-2013, 2015)
  • Volkswagen Golf (2010-2015) and Golf Sportwagen (2015)
  • Volkswagen Passat (2012-2015)

Owners can check for updates on VW’s site ( and on the EPA’s website (

For more information about the proposed 2.0-liter TDI settlement program, visit: or

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