VW agrees to spend additional $1 billion to fix more of its 3.0 engine cars in the U.S

Volkswagen will buyback or fix another 80,000 3.0 litre diesel vehicles in the U.S for which it will spend 1, and up to 105,000 2.0 litre vehicles in Canada.

In strategic efforts aimed at putting the emission cheating scandal behind it, Volkswagen AG has agreed to shell out $1 billion to fix or buy back another 80,000 diesel vehicles it sold in the US.

This new settlement deal covers its Audi, VW, and Porsche vehicles which have 3.0-litre engines.

With this settlement, VW has agreed to spend $17.5 billion in the U.S. alone to resolve claims from vehicles owners as well as from state and federal regulators over pollution emitted by its diesel vehicles.

Volkswagen, the world’s second biggest car manufacturer still faces the possibility of spending billions of dollars more, to resolve a criminal investigation by the U.S. Justice Department and federal and state environmental claims, as well as oversight by a federal monitor.

Hinrich Woebcken, CEO and president of Volkswagen Group of America said in a statement that the new settlement “is another important step forward in our efforts to make things right for our customers”.

The settlement was announced by U.S. District Judge, Charles Breyer,during a settlement hearing in San Francisco.

VW has also agreed to boost its efforts in the electric vehicles segment in California where it faces additional costs as it works to finalise on an agreement which Breyer termed as “substantial compensation” for owners of its 3.0-litre vehicles.

On Tuesday, Breyer also disclosed that Robert Bosch GmbH, a German engineering company which made the software for VW diesel vehicles has, in principle, agreed to settle civil allegations made by U.S. diesel vehicle owners.

Bosch has also confirmed that it has reached an agreement, however it has categorically denied the allegations made in the lawsuit by owners that it had actively and knowingly participated in VW’s emissions cheating scheme.

On Monday, VW has also agreed to spend $1.6 billion to buy back up to 105,000 its 2.0-litre vehicles in Canada.

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

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