Volkswagen will buy back or fix 80,000 cars affected by its emissions scandal at an estimated cost of $1 billion (approximately Rs 6,792.97 crore) to the company, The New York Times reported on Tuesday. The automaker reached a deal with several parties, including the California and United States governments following last-minute negotiations that forced the judge overseeing the case to reschedule hearings.
Owners of the cars affected by the settlement will also receive compensation from Volkswagen, although the German company’s lawyers and consumers are still negotiating the exact terms. A senior official of the Environmental Protection Agency said the settlement was about “taking pollution out of the air we breathe”. “It is also showing what a strong EPA enforcement presence means for those who break the law,” said Cynthia Giles.
Meanwhile, HJ Woebcken, president and chief executive of Volkswagen Group of America called the agreement “another important step forward in efforts to make things right”. The automobile giant is committed to resolving all outstanding claims “as quickly as possible”.
In June, Volkswagen had reached a deal with US regulators to pay up to $14.7 billion (approximately Rs 99,849.67 crore) and compensate owners of vehicles affected by its diesel emissions cheating scandal. However, the settlement allowed vehicle owners to refuse the company’s compensation offer and sue it on their own. The German automaker had fitted many of its cars with a software to fool emissions tests. Investigators said that the cars emitted more than 40 times the legal permissible limit.