Volkswagen, US gov't agree to Dieselgate resolution

Volkswagen, US gov't agree to Dieselgate resolution image

Text: / Photos: Volkswagen USA | posted April 22, 2016 15:10

To offer substantial compensation for affected owners

Volkswagen has officially announced that they have reached an agreement in principle with the U.S Government. The settlement has been recognized by several U.S Government agencies such as the Department of Justice, the Environment Protection Agency, and the California Air Resources Board, with the full involvement of the Federal Trade Commission.

According to the hearing's transcript, it specifically mentions Volkswagen offering buybacks, monetary compensation, repairs and lease cancellations to affected owners and lessees. Volkswagen will also be offering a fix for the owners which will be subject for government approval. In the U.S, over 480,000 cars have been fitted with the defeat device and the North American operations of Volkswagen are determined to either fix or take the affected cars off the road for good. At the moment, the settlement covers Volkswagens and Audis fitted with the EA189 engines, better known as the 2.0 TDI. A settlement has yet to be reached for the 3.0 TDI V6 engine owners and lessees.

EA189 engine

With the cars putting out 40 times the allowable Nitrous Oxide emissions, presiding judge Charles Breyer adds, "In addition, the agreement will fully address any excess emissions of NOx coming from these vehicles, and the environmental consequences from these excess emissions, by establishing a fund for appropriate remediation efforts. In addition to all these other matters, Volkswagen will be required to commit other funds to promote green automotive technology."

Volkswagen agreed to the judge's terms regarding the remediation efforts. "I think that reflects that Volkswagen is committed to winning back the trust of its customers, its dealers, its regulators, and all Americans. And we think that these agreements are an important step forward on the road to making things right. And, as Your Honor indicated, these agreements and the settlements that we hope will result will compensate fully all customers and re-mediate all environmental issues," said Robert Giuffra, Volkswagen's representative during the hearings. While a settlement for 2.0 TDI owners in the U.S is in motion, there will also be criminal investigations the U.S Department of Justice and from several Attorney Generals.

Both Audi Philippines and Volkswagen Philippines have assured customers in separate statements that their vehicles from the controversial issue stating that they fully comply with Philippine emission standards.