If regulators do not approve all 3.0-liter fixes, Volkswagen may have to shell out another $4.04 billion.
These models can not be repaired to meet their originally certified emission standards, so owners will likely opt for a buyback or trade-in. Buyers who opt for the fix will not only get their rig fixed, but they'll also get between $7,000 and $16,000 from VW.
U.S. District Judge Charles Breyer in San Francisco in February granted preliminary approval to the 3.0 liter deal and to a related Robert Bosch GmbH's settlement.
In total, VW will pay about almost $24bn to buy back cars and compensate owners in the U.S. and Canada, after admitting it installed software to cheat emissions tests in a decade-long conspiracy.
In a new development in the infamous Volkswagen Dieselgate scandal that rocked the automotive community a few years ago, a federal judge in California has ruled that he would approve a $1.2 billion settlement for a section of the cars that were affected by the emissions cheating.
Auto owners will receive between $200 and $1,500 each from the Bosch settlement, depending on the make and model of their vehicle.
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"By entering into the settlement, Bosch neither acknowledges the facts as alleged by the plaintiffs nor does Bosch accept any liability", the company said in a statement earlier. Compensation for any reduced-fuel efficiency caused by those repairs is "baked into" that figure, he said.
"Volkswagen has done everything it could have humanly done to make things right", Giuffra said.
Generation Two vehicles are from the 2013-2016 model years and include VW Touareg; 2013-2015 Audi Q7; 2014-2016 Audi A6, A7, A8, A8L and Q5; and, 2013-2016 Porsche Cayenne 3.0-liter TDI models. Last month, former Deputy U.S. Attorney General Larry Thompson was tapped to serve as independent monitor of Volkswagen for three years under a Justice Department plea agreement over its excess emissions.Volkswagen Group of America Chief Executive Hinrich Woebcken said Davis will sit on the executive team and "has a proven record of furthering compliance-related goals through pragmatic solutions that achieve measurable results". The company continues to face a criminal probe in Germany.
In total, VW has now agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, USA states and dealers and to make buyback offers. In January, Breyer refused to relinquish jurisdiction over that suit to a German court. Another $327.5 million deal that settles claims between drivers.
The payments are available only to Porsche, VW and Audi owners who take part in the class-action lawsuit settlement, Cabraser said. Giuffra is with Sullivan and Cromwell in NY.