U.S. Judge Approves Volkswagen's $10 Billion Buyback Settlement

From Road & Track

It's been more than a year since news broke that Volkswagen had installed software on its TDI models to help them cheat emissions. Since then, VW struggled to find an acceptable solution, and while a fix may not be on the table, the automaker is now a step closer to compensating customers affected

CNBC's Phil LeBeau reports that U.S. District Judge Charles Breyer has approved VW's $10 billion settlement to buy back around 475,000 cars. The Associated Press reports that buybacks will begin in mid-November.

"Given the risks of prolonged litigation, the immediate settlement if this matter is far preferable," said Breyer, per the Financial Times. "As the Court stated at the outset, the priority was to get the polluting cars off the road as soon as possible."

Breyer hinted last week that he would approve the buyback, but he also said he needed time to consider issues some owners have raised. More than 450 objections to the deal have been filed so far. Some argue that VW should pay the the full purchase price of the vehicles it buys back instead of the used value. Others are concerned the settlement doesn't cover additional costs like finance charges and registration fees.

At an earlier hearing, Breyer also gave his initial approval of a $1.2 billion settlement to compensate dealers. This settlement takes care of VW's cheating 2.0-liter diesels, but the company has yet to reach a settlement over its 3.0-liter diesels.

This story was originally published on 10/19/16 and was updated 10/25/16 at 11:30 a.m. ET to reflect Judge Breyer's approval of the buyback.

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