Volkswagen Emissions Settlement

On 2015-10-17 11:57:57

More about the settlements to modify or buyback certain Volkswagen and Audi diesel automobiles

Volkswagen has reached settlements related to allegations that it installed defeat device software to bypass emissions standards in certain 2.0-liter TDI diesel vehicles. Now that the Court has granted preliminary approval, owners and lessees will receive a notice by mail announcing the specific terms. Owners, lessees and some former owners and lessees will receive information about their rights; how to exclude themselves, object, or comment; and other options available to them under the settlements. Eligible individuals can create an account online, which will allow them to evaluate their options if the Settlements receive final Court approval.

View the complete Volkswagen and Audi 2.0L TDI Diesel Emissions Settlment here.

After the notice period is over, the Court will hold another hearing to decide whether to grant final approval. At this final approval hearing, the Court will consider comments on the Settlements.

 

Volkswagen Emissions Settlement

Volkswagen has agreed to pay up to $14.7 billion in consumer compensation and government fines for cheating on U.S. emissions tests after admitting last year, that certain two-liter diesel vehicles were programmed to pass government tests while emitting over 40 times the legal limit of pollutants. Models included in the settlement are the 2009-2015 Jetta, 2010-2013 & 2015 Audi A3, 2010-2015 Golf, 2013-2015 Beetle, and 2012-2015 Passat, all with 2-liter diesel engines. A settlement for an additional 80,000 vehicles with 3-liter diesel engines is still being negotiated.

Approximately $10 billion will go to 475,000 VW or Audi owners who can decide to have their cars either bought back or repaired. Owners will also receive payments of up to $10,000. The settlement includes $2.7 billion for environmental mitigation, $2 billion for research on zero emissions vehicles, and $603 million to settled claims with 44 states, Washington, D.C., and Puerto Rico. The automaker could still face billions more in fines, penalties, and possible criminal charges.

Court documents show that there currently is no repair that can bring the cars into compliance with U.S. pollution regulations without compromising the performance of the car. According to the EPA, if VW can't come up with a repair, they could have to buy back almost all of the vehicles. The company could start buybacks as early as fall. Consumers will have until May 2018 to make the decision as to whether they will have Volkswagen buy back or fix their car.

The agreement is believed to be the largest auto-related class action lawsuit in U.S. History and has resulted in a 13 percent drop in auto sales for the company.

 

Tentative Agreement Reached For VW Emissions Recall

Federal authorities and Volkswagen reached an interim agreement last week, to buy back some of its diesel cars equipped with devices used to cheat emissions test. The deal covers approximately 482, 000 vehicles equipped with 2.0L TDI engines. Those who leased their vehicles will have the option to cancel their leases and have their cars bought back or customers can decide to have Volkswagen fix their vehicle.

The problem is not safety related and the cars still pass state inspections, so a recall has not yet been officially issued. However, if Volkswagen does issue a recall, some states like California and those that follow Partial Zero Emission Vehicle standards, may prevent owners from renewing their registration without the fix.

The models listed below have been named by the EPA for emissions violations.

  • 2009-2015 Volkswagen Jetta 2.0L TDI
  • 2009-2016 Volkswagen Touareg 3.0L V-6 TDI
  • 2010-2015 Volkswagen Golf 2.0L TDI
  • 2012-2015 Volkswagen Beetle 2.0L TDI
  • 2012-2015 Volkswagen Passat 2.0L TDI
  • 2009-2015 Audi Q7 3.0L V-6 TDI
  • 2010-2015 Audi A3 2.0L TDI
  • 2014-2016 Audi A6 3.0L V-6 TDI
  • 2014-2016 Audi A7 3.0L V-6 TDI
  • 2014-2016 Audi A8/A8L 3.0L V-6 TDI
  • 2014-2016 Audi Q5 3.0L V-6 TDI
  • 2013-2016 Porsche Cayenne Diesel 3.0L V-6

The details of the repair will not be finalized until this summer, but owners are expected to receive "substantial compensation," whether through a buyback or repairs. For now, it is unclear how Volkswagen will modify these cars. Exact cash reimbursements and other details will be announced by June 21.

Volkswagen Admits To Cheating On Emission Tests

Volkswagen has admitted to using a cheat software that allowed as many as 11 million vehicles equipped with 2.0-liter diesel engines to pass U.S. emissions tests despite emitting more pollutants than legally acceptable. The software was first revealed by the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) on Sept. 29, 2015, after the West Virginia University's Center for Alternative Fuels, Engines & Emissions found irregularities with a 2012 Volkswagen Jetta and 2013 Volkswagen Passat. Reports allege VW installed devices that reduce emissions when the vehicle is undergoing emissions testing, allowing cars to meet standards in a laboratory or testing station. The vehicles accused of cheating include:

  • 2012-2015 Volkswagen Beetle, Beetle Convertible
  • 2010-2015 Volkswagen Golf
  • 2015 Volkswagen Golf SportWagen
  • 2009-2015 Volkswagen Jetta, Jetta SportWagen
  • 2012-2015 Volkswagen Passat
  • 2010-2015 Audi A3

Volkswagen is expected to issue a recall to fix the problem, but owners are questioning how it could affect mileage and efficiency.

With over 230 federal class-action lawsuits filed against the German automaker in courts across the United States, legal experts expect the cases to be consolidated before a single judge in a U.S. District Court in Los Angeles. The company is expected to face criminal, civil, and regulatory investigations in other countries as well.