Back in December, we reported that Volkswagen was putting the final touches on a deal to fix or buy back roughly 80,000 Audi, Porsche, and VW 3.0-liter diesels equipped with defeat devices that allowed them to cheat on U.S. emissions tests. The rumored pricetag was $1 billion.
Now, the deal has officially been presented to U.S. District Judge Charles Breyer in San Francisco, who's overseen the lion's share of Dieselgate settlements. The total cost to Volkswagen? A cool $1.2 billion.
The bulk of that sum--around $975 million--will be used to deal directly with the affected vehicles. Specifically, it will be used to repair some 58,000 Audi, Porsche, and VW 3.0-liter diesels from model-years 2013 to 2016, with the remainder spent on buybacks for 20,000 Audi and VW 3.0-liter diesels from 2009 to 2012.
The remaining $225 million will be dedicated to environmental remediation, as previously reported. It will be added to a $2.7 billion fund Volkswagen created for the same purpose when it settled a similar Dieselgate deal last summer involving 475,000 Audi and VW 2.0-liter diesels.
The 3.0-liter settlement affects the following makes and models:
- 2009-2012 Audi Q7
- 2009-2012 Volkswagen Touareg
- 2014-2016 Audi A6, A7, A8, A8L, Q5
- 2013-2015 Audi Q7
- 2013-2016 Porsche Cayenne Diesel
- 2013-2016 Volkswagen Touareg
For a complete overview of the Volkswagen Dieselgate scandal, grab a very large cup of coffee and click here.
Note: for purposes of clarity, "Volkswagen" has been used to refer to the Volkswagen Group parent company, while "VW" has been used to refer to the company's popular mass-market brand of automobiles.