Breaking: Volkswagen Reaches Agreement with Justice Department

Volkswagen AG confirms that it has reached an “agreement in principle” with the Justice Department, among others, to address heightened diesel emissions in nearly 570,000 vehicles.

Reuters reports that VW’s lawyer, Robert Giuffra says that the agreement is “an important step forward on the road to making this right.” He is also reported saying that “Volkswagen is committed to winning back the trust of its customers, its dealers, its regulators and all of America.”

Reuters also reports that the settlement is expected to include a buyback offer for 482,000 2.0L vehicles and a possible fix, if regulators agree on it. To encourage owners to sell back or have their vehicle fixed they will receive “substantial compensation.”

Also included in the deal is an environmental remediation fund to address the excess emission produced by the vehicles.

VW will also commit to promoting additional green automotive technologies, which they have experience with. The Think Blue. Factory, for instance seeks to reduce the consumption of resources in its factories. Since 2011, resources have been reduced by more than 25%.

Its vehicles, too, are minimizing their impact. Volkswagen is currently developing electric vehicles for many of its brands.

Giuffra is reported saying that the deal will offset all environmental harms and fully compensate owners.

Volkswagen and the government have until June 21 to complete a final “consent decree” that will face public comment and need judicial approval before taking effect.

The agreement does not, however, cover 3.0L engines. Another agreement will have to be reached for those 90,000 cars and SUVs.

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