VW Reaches Settlement for 3.0-liter TDIs, Report

A deal has been struck between Volkswagen and US environmental regulators that would settle the fate of the 3.0-liter TDI vehicles involved in the emissions cheating scandal. That’s according to unnamed sources who recently spoke to Bloomberg.

The deal would see Volkswagen AG buy back around 19,000 vehicles—including the A6, A8, and Touareg models—and would get the go ahead to fix the other 60,000 or so vehicles. According to a source who spoke to Bloomberg, that would save the company around $4 billion.

The fix would involve a simple software update, says the source. The update would only work on newer models, though. About 19,000 models are too old, and would require too complex a fix to be economically viable, and so would just be bought back.

The fate of those cars remains to be seen, though in the 2.0-liter TDI case some of the bought back cars are supposed to be scrapped or recycled, while others can be resold in markets with less stringent emissions regulations.

The deal hasn’t been approved yet, and according to the sources who spoke to Bloomberg, not all of the details have been hammered out either. How much VW will offer for the vehicles it buys back, for instance, remains to be determined.

Even when a deal is approved, Volkswagen still has to reach an agreement with the Federal Trade Commission, which is suing the company for false advertising.

The FTC said that it wants VW to offer to buy back all of the 80,000 3.0-liter TDIs, but the car maker is looking to avoid that.

[source: Automotive News]

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