Volkswagen is pushing for final approval of its $14.7 billion Dieselgate settlement before obtaining permission from U.S. authorities regarding a plan that would address emissions in its 482,000 affected vehicles in the U.S. The presiding judge in the case has indicated he is “strongly inclined” to approve the settlement.
The settlement for cars outfitted with VW’s 2.0-liter engine was proposed in June and is expected to be addressed by a federal judge in San Francisco this upcoming Tuesday. So far, the EPA has not received a proposal from VW that satisfactorily resolves emissions issues for the offending vehicles, according to Automotive News.
Charles M. Breyer, the federal judge overseeing the case in Northern California, stated that he is inclined to approve the settlement as is. He has a deadline for a final decision set for October 25th. The U.S. authorities will not review any proposed fixes from VW until the settlement is finalized.
If Volkswagen fails to devise an appropriate solution for its polluting diesels, it may face the financial burden of buying back all vehicles equipped with the emissions-cheating devices in the U.S. This could also apply to VW’s 3.0-liter diesel engines, which currently do not comply with emissions regulations.
Thus far, VW’s negotiations with the EPA have reportedly gone well, although challenges have arisen with the California Air Resources Board. In the past, CARB officials rejected two of VW’s recall proposals: one in January pertaining to the 2.0-liter engines and another in July linked to the 3.0-liter engine strategies.
Should the car manufacturer proceed with a vehicle buyback initiative for its 2.0-liter models, it has earmarked up to $10 billion for this purpose. Additionally, VW has allocated $2.7 billion for contributions to federal and California authorities to support pollution-reducing projects, along with another $2 billion for investments in clean technology.
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