VW to pay $1.2B or more to US owners of big diesels

Associated Press

FRANKFURT, Germany

Volkswagen has agreed to pay at least $1.2 billion in buybacks and compensation to settle claims from U.S. owners of cars with larger diesel engines that the company rigged to cheat on emissions tests.

And the German automaker could pay even more – as much as $4 billion – if it can’t repair many of the cars in a way that satisfies regulators.

The proposed settlement filed before Judge Charles Breyer in U.S. District Court in San Francisco covers owners of some 78,000 Audi, Volkswagen and Porsche cars with 3.0-liter diesel engines.

Volkswagen has already agreed on a $15 billion settlement with owners of some 500,000 smaller, 2.0-liter diesel engines.

Volkswagen has now settled most U.S. consumer claims as it tries to repair a tarnished reputation. The company still faces lawsuits from fewer than 5,000 owners of 2.0-liter diesels who opted out of the settlement, as well as some shareholder suits and numerous lawsuits filed by states for violating pollution laws.

VW also has settled a U.S. criminal investigation by agreeing to pay $4.3 billion, but a probe of employee behavior continues with seven people charged in the U.S. In all, VW will pay more than $20 billion to settle civil and criminal claims in the U.S. alone.