Volkswagen could be on the hook to buy back nearly 500,000 diesel vehicles sold in the U.S., with many owners getting $10,000 or more as part of a federal settlement to the maker’s diesel emissions cheating scandal.
The deal, which has reportedly been accepted by the U.S. Justice Department, the Environmental Protection Agency, the Federal Trade Commission and the California Air Resources Board, or CARB, will be the first step in resolving a case triggered by the revelation VW had equipped cars using its 2.0-liter turbodiesel with software designed to lower pollution levels when those vehicles were undergoing emissions tests.
All told, the maker has agreed to a deal worth around $14.7 billion. Of that, about $10 billion will go to compensating owners of the 2009 to 2015 diesel models. Another $2.7 billion is earmarked for “environmental remediation,” according to sources. The remaining $2 billion will fund environmental efforts, including the development of zero-emissions vehicles. Earlier this month, VW said it was planning to launch “at least 30 battery-based models by 2025.