Volkswagen Buybacks For Faked Emissions Tests

Volkswagen and U.S. regulators have reached a settlement concerning 80,000 VW, Audi and Porsche 3.0-liter diesel vehicles involved in the company's emissions cheating scandal. U.S. District Judge Charles Breyer in San Francisco said the settlement will include a buyback option for approximately 20,000 owners and substantial compensation on top of any repairs or a buyback. Volkswagen said they believe they can modify the other 60,000 vehicles into compliance with pollution regulations and will not offer a buyback if they can.

The global scandal began last year when the U.S. Environmental Protection Agency accused Volkswagen of fitting cars with software used to fool emissions tests. The U.S. Department of Justice previously reached an agreement with VW for 475,000 2.0-liter diesel cars, giving owners the option to have their vehicle bought back for the full trade in price. Volkswagen also agreed to pay owners $5,100 to $10,000 each, depending on the age of the car and whether the owner had it prior to Sept. 18 of last year.

In total, Volkswagen will spend up to $10 billion compensating consumers. That settlement also includes $2.7 billion for unspecified environmental mitigation and $2 billion to promote zero-emissions vehicles. The scandal has damaged Volkswagen's reputation and the company could face billions more in fines, penalties and possible criminal charges.