VW comes to agreement with American regulators Friday, 22 April 2016

A California judge has revealed that Volkswagen has come to an agreement with American officials on what amends the company will make for the emissions scandal they became embroiled in.

Judge Charles Breyer gave the parties until yesterday to come up with a concrete plan satisfactory to all the parties which included the US Environmental Protection Agency and the California Air Resources Board as well as Volkswagen.

"They have reached an agreement in principle as to what to do about the approximate 480,000 2L engine cars on the road and the associated environmental consequences resulting from the excess emissions from these vehicles," Judge Breyer said.

"It is also my understanding that the agreement will give consumers several options, including the option to have Volkswagen buy back their vehicle; and, subject to governmental approval after further testing, the option to have the consumer's vehicle modified in accordance with the agreement; and for those consumers who have leased their car, to cancel the lease and return the car to Volkswagen."

The scandal dates back to May 2014 when West Virginia University published results of tests commissioned by the International Council on Clean Transportation which found significantly higher in-use emissions on two vehicles, a 2012 VW Jetta and a 2013 VW Passat.

When the EPA questioned Volkswagen over the results, the company insisted the results were due to “various technical issues and unexpected in-use conditions”. Further testing debunked VW’s claims and the company eventually admitted it had installed a “defeat device” which turned emissions controls on during testing and off again during normal road use.

Judge Breyer also reported that the Plaintiffs' Steering Committee had reached an agreement in principle with Volkswagen.

"The combination of these agreements include payment of substantial compensation to the consumer class members in connection with the car buy back, the car modification, and cancellation of lease options I have previously discussed," he said.

"In addition, the agreement will fully address any excess emissions of NOx coming from these vehicles, and the environmental consequences from these excess emissions, by establishing a fund for appropriate remediation efforts. In addition to all these other matters, Volkswagen will be required to commit other funds to promote green automotive technology."

It is unclear what the ruling will mean for Australian customers as Volkswagen stated afterwards, "The arrangements in the making in the United States will have no legal bearing on proceedings outside of the United States."


A VW Jetta. Photo: Volkswagen