Volkswagen and federal regulators received an extension their deadline to reach a settlement on VW's 3.0-liter diesel engine emissions scandal.
Volkswagen AG and Bosch GmbH got very different types of news today about the same problem: how much they’re going to pay to resolved the emission cheat scandal for VW’s diesel engines in the U.S.
U.S. District Judge Charles Breyer gave the automaker and federal regulators until Friday in what he termed a “final” extension on the deadline he set for the parties to work out a settlement on 80,000 vehicles equipped with the 3.0-liter diesel engines that failed to meet U.S. emissions standards.
In granting the extension, Breyer noted that the discussions were complicated, but that he was optimistic they would reach a deal by Friday. The deal was supposed to be done last Friday.
Bosch, which helped in the design of the diesel engine and the cheat device software, is expected to pay out $300 million to settle its role in the emission scandal, according to a report from Reuters.
(VW awaits judge’s ruling on 3.0-liter diesel punishment. Click Here for the story.)
Diesel owners filed suit against the German supplier last claiming the company helped design “defeat device” software. Bosch was a “knowing and active participant” in Volkswagen’s decade-long scheme, the lawsuit claimed, according to Reuters.
The discussions between VW and regulators were expected to end last week with the deal being some version of the same agreement reached for the automaker’s 475,000 2.0-liter-powered diesel vehicles.
(EU sues four member states over VW diesel scam. For more, Click Here.)
The same judge already approved a deal costing VW about $10 billion to fix or buy nearly 475,000 vehicles powered by 2.0-liter diesel engines. The overall plan involving those engines will cost VW $14.7 billion in fees, fines and other future actions in addition to the repairs and buybacks.
That deal has VW paying owners between $5,100 and $10,000 per vehicle depending various factors, such as the age of the vehicle and what model it is.
(The U.S. is critical to maker’s turnaround. For more on VW’s revival plan, Click Here.)
Heading into last Friday, the speculation was that VW would pay $200 million to offset the emissions violations, but that was never confirmed. VW agreed to pay $2.7 billion to offset the violations for the aforementioned 2.0-liter engines.