Volkswagen Reaches Accord with Justice Department

By Paul Riegler on 21 April 2016
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DSC_0193Volkswagen announced it had reached an agreement in principle with the U.S. Department of Justice, the Environmental Protection Agency, and the California Air Resources Board, to settle the emissions scandal that has come to be known as Dieselgate.

U.S. District Court Judge Charles Breyer said Thursday that the settlement would include buyback options for nearly 500,000 of the automaker’s 2.0-liter diesel powered vehicles and a possible fix. The deal also calls for the embattled automaker to establish funds to promote green energy and to help reduce excessive emissions.

The Wolfsburg-based automaker also said it had reached an agreement on the “basic features” of a settlement with class action plaintiffs in the Dieselgate lawsuit in San Francisco.

The Department of Justice as well as individual VW and Audi owners filed suit against the automaker after it admitted having deliberately installed technology that would evade emissions standards except during testing thereby sidestepping federal regulations.

The two sides will have until late June to complete a final consent decree. The deal has no impact on legal proceedings outside the United States.

(Photo: Accura Media Group)