- Helping you drive happy

Canadian judge agrees on compensation package in VW case

The wait was a long one for some 20,000 owners of Volkswagen, Porsche and Audi vehicles equipped with 3-litre diesel engines, but a Supreme Court of Ontario judge has finally approved an agreement that will see the VW Group pay out a total of $290 million in compensation.

Under the agreement, cash payments will be sent out to owners and to lease owners of eligible vehicles. The German automaker has also agreed to pony up $2.5 million CAD for civil damages.

15,000 owners of 2013 to 2016 model-year vehicles who received a recall notice in connection with the emissions issues, and who owned an extended emissions warranty, will receive compensation. 5,000 owners of 2009-2012 model-year vehicles be compensated as well.

Other than cash payments, additional options for owners include buyback, trade-in, early lease termination or else a modification to reduce emissions.
Amounts paid to individual owners will vary between $2,000 and $12,600 depending on the model owned, its age and whether it was owned or leased.

The judge in the case, Paul Perell, stated that though the agreement was in his view far from perfect, it was in the best interests of all parties concerned that it be approved.