VW Settlement: Automaker Will Buy Back or Fix Emissions Fraud Cars

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Volkswagen told a California federal court today that it would either fix or buy back cars installed with the scandalous emissions-cheating defeat device in order to settle claims brought by the U.S. Department of Justice.

The settlement offer would extend to nearly 500,000 2-liter diesel engine vehicles but not the estimated 80,000 3.0-liter Audi and Porsche models.

U.S. District Judge Charles Breyer, who’s presiding over this and more than 500 VW consumer lawsuits, gave Volkswagen and the DOJ until June 21 to complete the details of the settlement. After that date, the final proposed settlement will be open to public comments for another 30 days.

While specific details of the VW settlement weren’t divulged, Judge Breyer said that the deal would also include “substantial compensation” for car owners. With repairs and consumer reimbursement, Volkswagen is likely to pay billions of dollars.

However, environmental activist Kathryn Phillips of the Sierra Club responded to the proposed VW settlement saying that the offer doesn’t go far enough.

“Without strict penalties, and without fixing or removing the polluting vehicles, people will continue to breathe dirtier air, consumers will lose faith in watchdog agencies, and manufacturers will believe they can endanger our health without feeling the full consequence,” Phillips said.

The matter of fines has yet to be addressed, however the U.S. Environmental Protection Agency initially noted that the automaker could face as much as $18 billion in fines alone for systematically cheating on emissions tests since 2009.

The proposed VW settlement is expected to affect the following diesel models:

• Jetta TDI Clean Diesel (2009-2015)
• Jetta Sportwagen TDI Clean Diesel (2009-2014)
• Beetle TDI Clean Diesel (2012-2015)
• Beetle Convertible TDI Clean Diesel (2012-2015)
• Audi A3 TDI Clean Diesel (2010-2015)
• Golf TDI Clean Diesel (2010-2015)
• Golf Sportwagen TDI Clean Diesel (2015)
• Passat TDI Clean Diesel (2012-2015)

VW Emissions Scandal Explained

In September 2015, the EPA announced that through an investigation the agency discovered that so-called “clean diesel” VW cars were installed with emissions cheating software known as a “defeat device.”

According to the EPA, certain 2009-2016 TDI diesel Jetta, Golf, Beetle, Passat, Audi and Porsche vehicles contained the defeat device that could sense when a vehicle was being tested for emissions and turn on controls during that time. However, when the vehicles were not being tested they would emit pollution up to 40 times what is allowed under U.S. law.

Hundreds of VW car owners and lessees started filing class action lawsuits against Volkswagen for deceptively marketing these “clean diesel” vehicles to the environmentally conscious driver all the while the cars were allegedly rigged to defeat emissions standards.

The government is represented by John C. Cruden, Nigel B. Cooney, Leslie Allen, Patrick B. Bryan, Bethany Engel, Danica Anderson Glaser, Marcello Mollo, Robert Mullaney and Joshua Van Eaton of the U.S. Department of Justice.

The Volkswagen Emissions-Cheating Software MDL is In re: Porsche “Clean Diesel” Marketing Sales Practices and Products Liability Litigation, Case No. 2683, before the Judicial Panel on Multidistrict Litigation.

UPDATE: On June 28, 2016, Volkswagen reached proposed settlements with both the U.S. Department of Justice and the U.S. Federal Trade Commission following the VW emissions scandal. VW’s deal with the DOJ includes up to $14.7 billion along with vehicle buyback provisions as well as funding for pollution control programs. In addition to the DOJ settlement, Volkswagen will also spend up to $10 billion in a buyback and lease termination settlement with the FTC that is expected to include about 475,000 vehicles.

UPDATE 2: The Volkswagen, Audi diesel emissions class action settlement is now open!Click here to file a claim!