VW to offer buyback, 'substantial compensation' to owners of polluting cars
Volkswagen reached an agreement Thursday with US regulators to offer US owners of some 480,000 illegally polluting diesel cars options of "substantial compensation" and to fix the cars, or to buy them back.
With the German automaker facing a court deadline for solutions to the emissions scandal, San Francisco district court judge Charles Breyer said the agreement in principle would give owners of its 2.0 liter diesel cars choices for compensation which also included cancelling the contracts for those under lease.
The offer, which will likely cost Volkswagen billions of dollars, also included creation of a fund for environmental protection, the company said at a court hearing.
Details of the proposal were not immediately released, but it appeared to be possibly enough to allow Volkswagen to avert a huge trial over how it would deal with the scandal that has already deeply damaged the company.
However it still faces fines potentially running to the tens of billions of dollars from US regulators.
Volkswagen has admitted it installed illegal software into 11 million 2.0 liter and 3.0 liter diesel engines worldwide, including VW, Porsche and Audi models, that intentionally masked the vehicle's real emissions levels during testing.
© 2016 AFP