VW inches to a final agreement with U.S. regulators and lawyers representing car owners

U.S. District Judge Charles Breyer has scheduled the next hearing for Dec 16. The current hearing has been postponed since “may produce a resolution of the outstanding issues.”

In a development that could add additional pressure to embattled auto maker Volkswagen, U.S. District Judge Charles Breyer, has postponed a court hearing that was set for tomorrow. The hearing would have addressed the issues pertaining to the 80,000 Porsche, Audi VW 3.0-litre diesel engine vehicles.

Breyer has stated that since negotiations are still ongoing between the German auto manufacturer and regulators and lawyers representing the car owners, he has been advised that a delay “may produce a resolution of the outstanding issues.” The next hearing has been scheduled on December 16.

Issues which are currently being negotiated include compensation for owners, buybacks and fixes for the 20,000 older VW SUVs and Audi vehicles, including a software fix for the 60,000 new Porsche, VW, and Audi vehicles.

As per two sources who have been briefed on the ongoing negotiations, VW has made progress with lawyers presenting owners of the vehicles. A deal has yet to be reached though.

For the 3.0-litre engine vehicles, Volkswagen is expected to shell out additional funds which will be parked into an environmental trust to offset excess emissions.

In June this year, VW has agreed to pay $2.7 billion over a span of three years to offset the pollution from the 2.0-litre vehicles. Emissions from the 3.0-litre vehicles will be far less since their number is far less and because they are far less polluting as well.

To date, Volkswagen has agreed to spend up to $16.5 billion to resolve the U.S. diesel emissions scandal. With the U.S. Justice Department still investigating the matter, it may potentially face more fines if any other such matter surfaces.

Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: