Finally! After more than a year of working on fixes and settlements with the EPA and CARB, Volkswagen is on the home stretch of the dieselgate scandal. That’s right, it’s finally worked out an official deal for the remaining 3.0-liter TDI engines that spewed illegal amounts of noxious fumes into the air.
This deal, while similar to the one for the 2.0-liter TDI engine, has a few key differences. Unlike the 2.0-liter models, those equipped with the 3.0-liter TDI, which spans the Audi, Volkswagen and Porsche brands, will not have a guaranteed buyback offer.
Under this deal, only models ranging from 2009 through 2012 (approximately 20,000 models), which have the so-called “Generation 1” engine will have the buyback or lease-termination offer. Models from 2013 through 2016 (approximately 63,000 models) will initially only have the repair option. That said, should these repairs fail to fix the issue, VW Auto Group must offer a buyback on these models, too.
There are no details on other cash offers like with the 2.0-liter engines, including damages paid above and beyond the repair or buyback. I am sure these will come in to play at some point, but VW is keeping them hush-hush for now.
In total, this deal will cost Volkswagen Auto Group $250 million. Of that, $225 million will go toward fixing and buying back affected vehicles and $25 million will go toward supporting zero-emission vehicles in California.
While the deal isn’t final, both sides have agreed to it. The deadline for finalizing the deal is Jan. 31, 2017.
Stay tuned for updates.