It's been almost a year since Volkswagen made the details of its 2.0-liter diesel settlement with US authorities public. But what of the 3.0-liter diesels? Finally, we get some answers for that one, too.
A federal judge granted final approval to Volkswagen's 3.0-liter diesel settlement this week. Reuters points out that not only did the judge approve Volkswagen's settlement, it also approved a settlement with Bosch, wherein the supplier will pay $327.5 million to VW diesel owners in the US for its role in Dieselgate. Volkswagen did not immediately return a request for comment.
The scheme will be similar to VW's 2.0-liter settlement. Volkswagen will either buy back or attempt to repair as many 3.0-liter diesels as possible. Whether owners choose the fix or a buyback, they will receive compensation between $7,000 and $16,000 on top of any fix or repurchase. Lessees can have their leases terminated and receive the same compensation.
The buyback is a bit different than the one for 2.0-liter engines. The 3.0-liter diesels are split between two generations. The first generation, covering vehicles from 2009-2012, will have the option of a buyback or a vehicle modification to reduce pollution, if the EPA can agree to one.
The second generation, from 2013-2016, is believed to be repairable to comply with federal emissions standards. For these vehicles, the fix is the owners' default option. If both the EPA and California Air Resources Board cannot approve a fix, the court can be asked to initiate a buyback. If buybacks occur across both generations of 3.0-liter diesel, VW could pay out as much as $4 billion to clean up this mess.
Thus far, Volkswagen has agreed to pay some $25 billion in the US alone to address its diesel malfeasance. That amount is split between lawyer payments, owners, dealerships, individual US states and federal regulatory bodies. It has also opened up a fund that it will use to promote electric-vehicle adoption across the country.