Federal and state regulators have reached another deal with German automaker Volkswagen concerning around 80, 000 diesel vehicles that were previously not part of the $15 billion settlement.
According to the details revealed so far about the tentative deal, Volkswagen, Porsche and Audi models equipped with the V6 three-liter turbo diesel will be subject to both fixes and the more costly buybacks. Initially, the agreement only covered 475,000 VW and Audi vehicles packing the 2.0-liter diesel engine. “The agreement announced by the Court today between Volkswagen and U.S. environmental regulators is another important step forward in our efforts to make things right for our customers,” commented Hinrich J. Woebcken, President and CEO of Volkswagen Group of America. This has to do with the Dieselgate scandal triggered by the EPA in September 2015 when the agency announced VW was using a so-called “defeat device,” to illegally meet emissions rules.
VW acknowledged the wrongdoing and later admitted doing the same on the bigger engine, which has been fitted in more costly models. The VW, Porsche and Audi diesel cars in the US have been barred from sales and the $14.7 billion settlement announced in June was almost entirely related to the buyback plan for the 2.0-liter diesel, as well as a strategy to support zero-emissions vehicles. The new deal allows “Volkswagen to recall more than 75 percent of affected 3.0L TDI V6 vehicles to bring them into compliance with the emissions standards to which they were certified, if appropriate modifications are approved by EPA and CARB.” There’s an “if” involved here – as the carmaker and the agencies have not been able to agree on a fix.