US: Deadline over the diesel agreement extended by one week image

Volkswagen, US regulators and owners have an extra week to reach a final diesel emissions settlement, as the federal judge has extended the deadline until June 28.

On April 21, Volkswagen struck a deal “in principle” with the US regulators and car owners of nearly 480,000 over-polluting diesels. The federal judge who oversees the case set a June 21 deadline to file the final settlement, but he has extended this week the deadline for June 28 “given the highly technical nature of the proposed settlements in these complex proceedings.” Volkswagen agreed to form a compensation fund for the owners, an environmental remediation one to address excess emissions and a fund to promote green technologies.

The affected customers will also have the options to accept a buy back from Volkswagen or the company to fix their vehicles, or to give up on their leases and leave the cars in dealers’ courtyard. The initial deal only targets the models powered by the 2.0-litre diesel engines and it does not include the extra 90,000 larger 3.0-litre TDIs, which are also polluting way over the legal limits.

The German carmaker said it set aside 16.2 billion euros (18.2 billion dollars) to cover the costs of the scandal worldwide, including nearly 8 billion euros for buy backs and repairs. The cheating trick made VW’s market share in Europe to shrink to 23.9 percent after the first five months of the year, down from 25 percent in 2015, the lowest for the period since 2011.