Volkswagen, currently the world’s largest car maker, has agreed to pay at least $1.2bn (£1bn) to either repair or purchase 78,000 diesel-engined cars that it’s has sold in the US to resolve more emissions-cheating claims.
Without regulatory approval, the company might well be forced to buy back all of the cars, which is likely to cost the group around $4bn. This deal, one of several in the seemingly endless emissions scandal, will still need to be approved through the courts.
Robert Bosch, one of Volkswagen’s largest automotive parts suppliers, has also agreed to fork out $327.5m to American owners of affected Volkswagen Group cars sold under the Volkswagen, Audi and Porsche brands.
The proposed settlements for three-litre models are the last major obstacle in the US for VW over its emissions scandal.
VW’s US chief executive Hinrich Woebcken said: “With the court-approved two-litre TDI programme well under way and now this proposed three-litre TDI programme, all of our customers with affected vehicles in the US will have a resolution available to them.”
According to BBC News sources, Bosch said in a statement it didn’t admit wrongdoing or accept liability but had decided to settle so it could focus on an extensive “transformation process” the company has embarked on.
A federal judge in San Francisco is to hold a 14 February hearing on whether to grant preliminary approval for these settlements.