SAN FRANCISCO—Volkswagen reached a deal that will give at least some owners of the remaining 80,000 diesel vehicles caught in the company’s emissions cheating scandal the option of a buyback and provide compensation to all of them on top of any repurchase or repairs, U.S. regulators and a federal judge said Tuesday.
The $1 billion settlement with the U.S. Environmental Protection Agency will give owners of 20,000 3-liter diesel cars the choice of a buyback. The figure does not include additional payments to owners.
Volkswagen believes it can bring the other 60,000 vehicles into compliance with pollution regulations and will not offer a buyback if that’s the case, U.S. District Judge Charles Breyer said in San Francisco.
The deal includes $225 million the German automaker will contribute to an environmental fund to offset the cars’ excess pollution, Cynthia Giles of the EPA said in a conference call with reporters.
Additional compensation for car owners will be substantial, according to the judge, but he did not provide a figure and said the sides still had more work to do.
“I am optimistic the parties will resolve the remaining issues,” Breyer said, without elaborating on what was left to be done.
The settlement was a major step toward rectifying lawsuits stemming from the global scandal that erupted last year, damaging Volkswagen’s reputation and hurting its sales. The company previously reached a nearly $15 billion deal for 475,000 2-liter diesel cars also programmed to cheat on emissions tests.
Hinrich J. Woebcken, president and CEO of Volkswagen Group of America Inc., said the agreement announced Tuesday was part of Volkswagen’s “efforts to make things right” for its customers.
