VW must obtain EPA and CARB approval for an emissions fix to avoid forced buyback of up to $58,000 for each vehicle.Volkswagen and Bosch have reached a settlement with the Federal Trade Commission to resolve civil claims related to 3.0-liter TDI engines outfitted with illegal 'defeat' devices.Mirroring central provisions in the 2.0-liter settlement, owners will be able to sell back their car to VW at "favorable prices and obtain compensation for their losses." The payouts will range from around $26,000 to $58,000 depending on the particular make, mileage and trim, potentially resulting in a maximum penalty of $4 billion.
The list of vehicles equipped with the 3.0-liter V6 mill includes the Audi A6, A7, A8, Q5 and Q7; the Porsche Cayenne; and the VW Touareg. Approximately 78,000 such vehicles were sold in the US.
VW can minimize the financial hit by developing a compliance refit program that receives approval from the EPA and California Air Resources Board. Owners would still be eligible for $8,500 to $17,600 in compensation, but the total payout -- if all vehicles are repaired and none bought back -- would fall to around $1.25 billion.
VW has also submitted a settlement proposal to resolve an ongoing class-action lawsuit related to the 3.0-liter engines.
"With the Court-approved 2.0L TDI program well under way and now this proposed 3.0L TDI program, all of our customers with affected vehicles in the United States will have a resolution available to them," said VW of America CEO Hinrich J. Woebcken. "We will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward."
The company expects to receive repair approval for its second-generation 3.0 TDI powerplant, which was used for 58,000 vehicles from the 2013-2016 model years, however so-called Generation 1 vehicles from the 2009-2012 model years will all be bought back.