FRANKFURT, Germany—Volkswagen has agreed to pay at least $1.2 billion in buybacks and compensation to settle claims from U.S. owners of cars with larger diesel engines that the company rigged to cheat on emissions tests.
And the company could pay even more—as much as $4 billion—if it can’t come up with an acceptable fix for cars that can be repaired.
The proposed settlement filed late Tuesday before Judge Charles R. Breyer in U.S. District Court in San Francisco covers owners of some 75,000 Audi, Volkswagen and Porsche cars with 3.0-liter diesel engines.
Volkswagen has already agreed on a $15 billion settlement for some 500,000 smaller, 2.0 liter diesel engines.
Under Tuesday’s proposed class action settlement, owners of older models from 2009-2012, which cannot be fixed to meet pollution standards, will be offered buybacks or trade-ins plus compensation ranging from $7,755 to $13,880, according to a statement from owners’ attorneys.
