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Details on VW’s U.S. Diesel Deal Due by June 21
A federal judge confirms Volkswagen AG has reached agreement on a consent decree that would resolve its admission that it rigged about 482,000 diesel-powered cars to bypass U.S. pollution standards.
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A federal judge confirms Volkswagen AG has reached agreement on a consent decree that would resolve its admission that it rigged about 482,000 diesel-powered cars to bypass U.S. pollution standards.
U.S. District Court Judge Charles Breyer also imposed a gag order on the parties after scolding them not to leak details of the agreement before the final deal is announced by June 21. Breyer notes that the decree is subject to public comment and his court’s approval before it will take effect.
Breyer says VW will offer affected owners the option of selling their cars back to VW, cancelling their leases or keeping their vehicles and allowing VW to update the emission control system. Regardless of their choice, owners will receive “substantial” compensation from the carmaker, Breyer adds.
The judge confirms earlier reports that VW will be required to fund “green” vehicle initiatives and pay remediation for pollution caused by the rigged diesels it sold.
Details about how VW will repair diesels have not been resolved. It also isn’t clear when the Environmental Protection Agency will allow VW to begin selling diesels in the U.S. again.
The settlement applies only to cars equipped with 2.0-liter 4-cylinder diesels. VW continues to negotiate a separate agreement to remedy about 80,000 of its 3.0-liter V-6 diesels that also exceed emission limits. The decree also won’t affect separate investigations into VW’s wrongdoing by the U.S. Dept. of Justice, Federal Trade Commission and several state attorneys general.
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