VW, US ‘ink $1 bln deal to pay owners of cheating diesels’
DETROIT-The Associated Press
AFP photoVolkswagen, the U.S. government and private lawyers have reached a deal for the automaker to spend just over $1 billion to compensate owners of about 600,000 diesel-powered cars that cheat on emissions tests, including buyback offers to some owners, according to a person briefed on the matter.
The “deal in principle” includes a maximum amount of spending, but the final details, like how much each owner would get, are still being worked out, according to the person, who asked not to be identified because the deal hasn’t been made public.
Some owners would get a choice of having VW repair their cars or buy them back, but that would vary by model year and engine type, the person said. The deal does not yet include plans on how to repair the cars, the person said. The cars can spew out harmful nitrogen oxide at 40 times the allowable limit, the person said.
The agreement is likely to be announced soon during a federal court hearing in San Francisco. The person says it will not include plans to fix the cars. Those plans, and the cost of the fixes, apparently are still under negotiation.
“They’ve agreed on a maximum amount of money, over $1 billion” for compensation, said the person. “How it’s allocated and distributed, that remains to be seen.”