US Judge Approves $1.2 Billion Deal In Volkswagen Dieselgate Scandal Case
Cyrus Dhabhar
1 min read
May 12, 2017, 09:00 AM
Key Highlights
- The deal is to compensate for cars and SUVs fitted with 3-litre diesels
- Premium cars and SUVs like the Porsche Cayenne and Audi A8 affected
- 3-litre diesel engines can be fixed or bought back by Volkswagen
In a new development in the infamous Volkswagen Dieselgate scandal that rocked the automotive community a few years ago, a federal judge in California has ruled that he would approve a $1.2 billion settlement for a section of the cars that were affected by the emissions cheating. The settlement is for the last 80,000 cars that are fitted with the larger 3-litre diesel engine that was also included in the Dieselgate scandal along with the now infamous 2-litre Volkswagen group engine. The $1.2 Billion additional settlement will take the total settlement from the Volkswagen group to a record setting $22 Billion.
US District Judge Charles Breyer in San Francisco ruled that he expected to soon issue an order granting approval for the deal that would apply for cars made between 2009 and 2016. The cars of course would be the ones fitted with the 3-litre engines and found in the Audi, Porsche and certain Volkswagen cars and SUVs. The settlement amount will cover situations like the buyback that was put into motion with the 2-litre engine models. It will also include costs for repairs and covering cancelled leases for the affected cars and SUVs as well as a fine of $225 million to help reduce the effect of pollution caused by these vehicles.
The Volkswagen group welcomed the ruling and in an official statement said, "This marks an important milestone for Volkswagen and means that a resolution is available to all of our customers with eligible vehicles in the United States."
The lead attorney for consumer plaintiffs, Elizabeth Cabraser, also welcomed the ruling from the California judge and said, "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 to account.”
Unlike the 2-litre engine cars, the 3-litre engine vehicles are said to be fixable. This could mean that several owners could choose to retain their vehicles and opt instead for the repairs that will be carried out by Volkswagen in addition to getting a large cash settlement from the Volkswagen group. This would include the likes of premium cars like the Porsche Cayenne and Panamera, Audi A8, Q7, etc and the Volkswagen Touareg.
US District Judge Charles Breyer in San Francisco ruled that he expected to soon issue an order granting approval for the deal that would apply for cars made between 2009 and 2016. The cars of course would be the ones fitted with the 3-litre engines and found in the Audi, Porsche and certain Volkswagen cars and SUVs. The settlement amount will cover situations like the buyback that was put into motion with the 2-litre engine models. It will also include costs for repairs and covering cancelled leases for the affected cars and SUVs as well as a fine of $225 million to help reduce the effect of pollution caused by these vehicles.
The Volkswagen group welcomed the ruling and in an official statement said, "This marks an important milestone for Volkswagen and means that a resolution is available to all of our customers with eligible vehicles in the United States."
The lead attorney for consumer plaintiffs, Elizabeth Cabraser, also welcomed the ruling from the California judge and said, "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 to account.”
Unlike the 2-litre engine cars, the 3-litre engine vehicles are said to be fixable. This could mean that several owners could choose to retain their vehicles and opt instead for the repairs that will be carried out by Volkswagen in addition to getting a large cash settlement from the Volkswagen group. This would include the likes of premium cars like the Porsche Cayenne and Panamera, Audi A8, Q7, etc and the Volkswagen Touareg.
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