VW reportedly strikes a deal with the US regulators over the diesel scandal image

Volkswagen has finally reached an agreement with the US officials over the emissions scandal, offering buybacks and compensations to the affected owners.

Last month, the US district Judge Charles Breyer gave Volkswagen an April 21 deadline to make a deal with the US Justice Department, the Environmental Protection Agency and California Air Resources Board over a fix for the 580,000 over-polluting diesels. And recent reports confirmed that the automaker finally came to common grounds with the regulators and the company was expected to tell the court today that it would offer a buy back for about 500,000 2.0-litre diesels sold in the country.

Sources also revealed to Reuters that Volkswagen agreed to form a compensation fund for the owners of the over-polluting cars, a fund that is said to force the automaker to put aside an extra 1 billion dollars apart from the cost involved by the buyback agreement. Owners are expected to have around two years to decide whether to sell back vehicles or get them repaired.

The German Die Welt newspaper reported however that the deal involved paying each customer 5,000 dollars and VW would separately have to pay to fix their vehicles. The paper said the agreement did not include a detailed plan to fix the affected cars, nor were the actual details related to fines and other compensation measures firmly fixed. However, the costs will be greater than that, as the agreement will probably include an environmental remediation fund as well, for breaking the emissions laws in the US since 2009.

Via Reuters