31 shares WASHINGTON (AP) 鈥?Volkswagen is taking a major step toward compensating owners and government regulators for its emissions cheating scandal. But it will take much longer to repair the damage to its reputation. 15.3 billion to settle consumer lawsuits and government allegations that its diesel cars cheated on U.S. The settlement announced Tuesday is believed to be the largest auto-related class-action settlement in U.S. 10 billion will go to 475,000 VW or Audi diesel owners. VW agreed to either buy back or repair their vehicles, although it hasn't yet developed a fix for the problem. 15 billion to settle consumer lawsuits and government allegations that it cheated on emissions tests in what lawyers are calling the largest auto-related class-action settlement in U.S. The settlement still must be approved by U.S. District Judge Charles Breyer, who has set a July 26 hearing for preliminary approval. Final approval is expected in October. Owners expressed relief that a plan is finally coming together nine months after the scandal was uncovered.
But they're still angry. Diesel owners thought they were buying high-performance, environmentally friendly cars; they felt betrayed when they learned the vehicles' emissions vastly exceeded U.S. Zandy Hartig, a Los Angeles actress who owns a diesel-powered 2013 Jetta SportWagen. Hartig is opting for the buyback. She loves her car and wishes she could keep it, but she doesn't trust Volkswagen to come up with a fix that will stop polluting. The scandal has also damaged VW-brand sales. In the first five months of 2015, before the scandal, Volkswagen sold 144,006 cars in the U.S. In the first five months of this year, the total fell 13 percent to 125,205. Sales at the company's other main brands 鈥?Audi and Porsche 鈥?are up, but they have fewer diesel models. Volkswagen dealer Steve Kalafer of Flemington, New Jersey, says owners will likely welcome the buyback money but will shop elsewhere once they get it.
Kalafer says his sales are down 20 percent to 50 percent each month compared with a year ago. But history is on its side. 2 billion to promote zero-emissions vehicles. 603 million. It still faces billions more in fines and penalties as well as possible criminal charges. Volkswagen has acknowledged that the cars, equipped with 2-liter diesel engines, were programmed to turn on emissions controls during government lab tests and turn them off while on the road. Investigators determined that the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems in humans. The company got away with the scheme for seven years until independent researchers reported it to the Environmental Protection Agency. Gina McCarthy, administrator of the EPA. If the settlement is approved, owners who choose to have VW buy back their cars would get the National Automobile Dealers Association clean trade-in value from before the scandal became public on Sept. 44,000, depending on the model, age, mileage and options on their car, the Justice Department said in a statement.
Models covered by the settlement include the 2009-2015 Jetta and Audi A3, the 2010-2015 Golf, and the 2012-2015 Beetle and Passat, all with 2-liter diesel engines. Lawyers are still working on settlements for another 80,000 vehicles with 3-liter diesel engines. Owners can also have VW repair the cars for free 鈥?assuming it comes up with a fix. According to court documents filed Tuesday, there currently is no repair that can bring the cars into compliance with U.S. When VW eventually proposes a repair, it must be approved by the Environmental Protection Agency and the California Air Resources Board. Any repair that regulators approve could hurt the cars' acceleration and fuel economy. The EPA said Tuesday that any fix VW develops won't bring the cars in full compliance with clean air laws. 2.7 billion in environmental mitigation will go toward offsetting the increased pollution, the agency said. Volkswagen marketed the cars as more fuel efficient and better performing that those with regular gasoline engines. If it can't come up with a repair, VW could have to buy back most of the vehicles.
