Yahoo Autos VW Will Agree to Buy Back U.S. Emissions-Cheating TDIs, Says Report
Earlier today, we reported that Volkswagen would offer U.S. customers affected by its diesel cheating emissions scandal $5000 in compensation. But now, a slightly different report has emerged. Reuters reports that Volkswagen will offer buybacks on up to 500,000 cars it sold in the U.S. equipped with emissions cheating defeat devices.
The Reuters report cites anonymous sources familiar with the negotiations. It's expected that VW will formally present its solution to Federal Judge Charles Breyer in San Francisco Thursday. Judge Breyer threatened Volkswagen with a trial this summer if it didn't present a fix by April 21st.
Reuters also reports that Volkswagen might offer to repair the cars affected, but only if the EPA deems them fixable. Around 500,000 cars in the U.S. and 11 million worldwide were equipped with an emissions cheating "defeat device," which allowed cars powered by VW's 2.0-liter TDI engine to emit up to 40 times the legal amount of nitrogen oxide (NOx) in real-world use. In lab testing, the car would detect that it was being evaluated and perform in compliance with emissions standards.
This latest report seems to somewhat contradict an earlier report from German newspaper Die Welt, indicating that Volkswagen would offer affected U.S. owners $5000 in compensation money. Reuters says that VW will pay a yet-to-be-determined cash compensation to customers who sell their cars back to VW, or elect to have them repaired. Volkswagen reportedly set aside $1 billion for additional compensation in addition to the cost of the buybacks.
Owners are said to have two years to decide whether or not they want to sell their cars back to VW, or have them fixed. Those who elect a buyback will receive the resale value of their vehicle before news broke of the cheating last September, plus an additional cash compensation.
Last month, the California Air Resources Board said that it might not be possible to fix all of the affected cars. In Europe, where a recall to repair affected cars has begun, it's said that the fix has a negative impact on fuel economy, but Volkswagen denies this.
A court hearing is set for Thursday at 8:00 a.m. pacific, so we'll know Volkswagen's definitive plans then. When reached by Road & Track, a Volkswagen spokesperson declined to comment.
This post was last updated at 4:42 p.m. ET to reflect new information from Reuters.
