Judge Breyer approves VW and Bosch settlement agreements, bringing total cost to $25 billion.

U.S. District Judge Charles Breyer granted final approval Thursday of Volkswagen's settlement proposal addressing its 3.0L V6 diesel vehicles engineered to evade U.S. emissions regulations.

Volkswagen will pay more than $1 billion to to fix or buy back almost 80,000 Volkswagen, Audi and Porsche vehicles equipped with the V6 TDI.

However, this is contingent upon Volkswagen providing a fix that satisfies the U.S. Environmental Protection Agency (EPA) and California Air Resources Board (CARB). If the company is unable to furnish a satisfactory fix, the total could climb as high as $4 billion.

Bosch, the company responsible for supplying the engine control units (ECUs) featuring the illegal software, also agreed to pay more than $325 million for its role in the scandal but admitted no wrongdoing, Reuters reports.

Owners of V6 TDI models covered under the agreement will have the option to either have their cars bought back or repaired. Those who choose the repair (assuming one is approved) will also be eligible for compensation of $7,000 or more, depending on the model.

Between the settlement offers, government fines and other payouts, Volkswagen's total Dieselgate outlay in the United States alone now tops $25 billion.