Volkswagen and the Federal Trade Commission have reached agreements that would resolve 78,000 outstanding civil claims against 3.0-liter TDI V-6 diesel engine vehicles in the U.S.
On Feb. 2, Volkswagen and the FTC submitted two agreements to the court, granting cash payments and the following specific actions (to eligible members):
- 58,000 Volkswagen, Audi and Porsche 3.0-liter TDI V-6 diesel cars from the 2013-2016 model years: Owners will get free car repairs when they bring their vehicle into compliance with emissions standards. This action requires court approval, as well as an approval of U.S. regulators for the specific repair.
- 20,000 Volkswagen and Audi 3.0-liter TDI V-6 cars from the 2009-2012 model years: Volkswagen will buy back or offer trade-in credit of equal value, or terminate the leases of the vehicles. For owners and lessees who want to keep their cars, Volkswagen will modify the cars to reduce their nitrogen oxide emissions, if the procedure gets approval by federal regulators.
The affected cars include:
- 2009-2012 Volkswagen Touareg
- 2009-2012 Audi Q7
- 2013-2016 Volkswagen Touareg
- 2013-2015 Audi Q7
- 2014-2016 Audi A6, A7, A8, A8L and Q5
- 2013-2016 Porsche Cayenne Diesel (shown above)
"With the Court-approved 2.0L TDI program well under way and now this proposed 3.0-liter TDI program, all of our customers with affected vehicles in the United States will have a resolution available to them," says Hinrich J. Woebcken, president and CEO of Volkswagen Group of America, Inc. "We will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward."
The program will cost Volkswagen up to $1.2 billion if approved, and if the company gets 100 percent participation from affected owners and lessees. Volkswagen will begin the 3.0-liter TDI Settlement program as soon as it is approved by the court, which will be this May at the earliest.
READ MORE: Volkswagen isn't the only company with diesel problems. Fiat Chrysler is under investigation of Clean Air Act violations.
RATE SEARCH: In the market to buy a car? Check interest rates now at Bankrate.
Tara Baukus Mello writes the cars blog as well as the weekly Driving for Dollars column, providing both practical financial advice for consumers as well as insight into the latest developments in the automotive world. Follow her on Facebook here or on Twitter @SheDrives.