A federal judge approved the long-awaited $14.7 billion settlement for Volkswagen's diesel scandal.
A federal judge signed off the proposed $14.7 billion settlement for owners of Volkswagen cars with the 2.0-liter TDI diesel engines.
U.S. District Judge Charles Breyer said in his order approving the long-negotiated deal, said the settlement “in its current form is fair, adequate, and reasonable and is in the best interest of Class Members.”
Breyer noted in the order that the benefits under the order should be made immediately and the automaker committed to making that happen in a public statement about the newly approved agreement.
“Final approval of the 2.0-liter TDI settlement is an important milestone in our journey to making things right in the United States, and we appreciate the efforts of all parties involved in this process,” said Hinrich J. Woebcken, president and CEO of Volkswagen Group of America Inc.
“Volkswagen is committed to ensuring that the program is now carried out as seamlessly as possible for our affected customers and has devoted significant resources and personnel to making their experience a positive one.”
Volkswagen remains focused on resolving other outstanding issues in the United States and continues to work towards an agreed resolution for customers with affected 3.0-liter TDI V6 diesel engines.
The settlement requires VW to pay more than $10 billion to either buy back or repair about 475,000 2-liter diesel vehicles that were sold between 2009 and 2015, which were built with cheat devices designed to get around emissions tests.
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The German maker is compensating owners who purchased 2.0-liter diesels before September 2015 with payments of $5,100 to $10,000, depending on the age of the car, if they elect to get the vehicles repairs.
Buybacks range in value from $12,475 to $44,176, including restitution payments, and varying based on mileage.
Not everyone was on board with the deal. Several car owners petitioned the judge to increase the penalties VW will have to pay during a fairness hearing last Tuesday that featured about two dozen speakers, most of whom were unsatisfied with Volkswagen’s offer.
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However, the deal had many more supporters include a class action group of consumers, the Environmental Protection Agency, the California Air Resources Board and the Federal Trade Commission.
On top of the other payouts, Volkswagen will also pay $2.7 billion for environmental mitigation and another $2 billion for clean-emissions infrastructure. The company has also agreed to a $1.2 billion settlement with dealers over the same matter.
Additionally, the company is still trying to work out a deal with the 80,000-plus owners of its 3.0-liter diesels. Breyer will hold a hearing Nov. 3 about those discussions.
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The cars eligible for the new deal include 2.0-liter diesel versions of the 2013 through 2015 VW Beetle, 2010 through 2015 VW Golf, 2009 through 2015 VW Jetta, 2012 through 2015 VW Passat and 2010 through 2013 and 2015 Audi A3. They must submit claims by Sept. 1, 2018, and can visit VWCourtSettlement.com for more information.