The Dieselgate controversy has made further progress towards its resolution, as a federal judge has approved a civil settlement between Volkswagen and U.S. plaintiffs regarding the lawsuit against the German automaker concerning vehicles equipped with its 2.0-liter diesel engine.
The estimated $15 billion settlement, which has received preliminary approval from Judge Charles Breyer in California, was revealed in a joint statement from both VW and the plaintiffs’ committee. The settlement affects approximately 475,000 vehicles, with final approval anticipated on October 18.
This settlement is relevant for owners of diesel vehicles including the 2013-2015 VW Beetles, 2010-2015 VW Golfs, 2009-2015 VW Jettas, 2012-2015 VW Passats, and the 2010-2013 and 2015 Audi A3s. These vehicles were found to emit nitrogen oxide levels significantly exceeding the permissible limits for U.S. passenger vehicles. The settlement does not cover vehicles powered by the 3.0-liter turbodiesel V6 engines, such as the Audi Q7 and Porsche Cayenne.
Under the terms of the settlement, eligible vehicle owners have two options. They can either sell their vehicles back to VW or terminate their leases early, receiving the pre-Dieselgate value of their cars as of September 2015. Alternatively, they may choose to have their vehicles repaired, provided Volkswagen is able to devise an effective fix that meets the standards set by the Environmental Protection Agency and the California Air Resources Board. In both scenarios, customers will also receive a cash payment from Volkswagen, typically ranging from $5,100 to $10,000.
All compensation for plaintiffs will be drawn from a $10.033 billion fund established by VW for this lawsuit. Additionally, VW will contribute $2.7 billion to the EPA and CARB for environmental cleanup, along with another $2 billion dedicated to electric vehicle initiatives.
“We have received overwhelmingly positive feedback from affected owners and lessees regarding this historic agreement, and we believe this support will continue to grow as consumers learn more about the benefits of the settlement,” stated Elizabeth Cabraser, lead counsel for the plaintiffs. “We eagerly anticipate finalizing this agreement so consumers can start availing themselves of its benefits soon.”
Diesel vehicle owners can check their eligibility for the civil settlement by visiting VWCourtSettlement.com and entering their vehicle information.
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