U.S. Regulators Approve Emission Fix for Most of VW’s V-6 Diesels

U.S. regulators in California and Washington, D.C., have finally accepted a repair plan for about 38,000 diesel-equipped crossover vehicles sold by Volkswagen AG units but deemed to violate emission rules, Reuters reports.

Last May VW Group agreed to pay at least $1.2 billion to either buy back or fix about 80,000 cars and crossovers that were fitted with 3.0-liter V-6 diesels developed by Audi. The recall cost would have surged to an estimated $4 billion if regulators had refused to certify a repair scheme.

The approved plan covers 2013-2015 model Audi Q7 and 2013-2016 Porsche Cayenne and VW Touareg crossover vehicles. Owners who agree to have their vehicles updated also will receive cash payments of $8,500-$16,000, according to Reuters.

VW so far has bought back 20,000 of the oldest vehicles among the 80,000 targeted units. The company continues to await approval for a plan to fix roughly 22,000 diesels in 2014-2016 model Audi A6 and A7 quattro sedans, Q5 midsize crossovers and A8 and A8L large sedans.

Separately, VW is spending as much as $14.7 billion in the U.S. to repair or buy back about 475,000 vehicles equipped with 4-cylinder diesels that had been rigged to evade emission limits.

The overall cost for repairs, buybacks, remediation and fines resulting from the company’s diesel scandal has risen to about $30 million in the U.S. alone. VW also sold 10.4 million rigged diesels in other regions, where regulatory penalties and approved fixes have been significantly lower.