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Volkswagen reaches $15B settlement with U.S. regulators

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Volkswagen has just reached a settlement with U.S. regulators following the diesel emissions scandal. It will pay around $15 billion USD (approx. $20 billion CAD) to fix 2.0L TDI engines, invest in EV development, and contribute to a green fund.

More specifically, here’s what Volkswagen will do:

  • Establish a single funding pool to cover the 2.0L TDI settlement program (there is still no deal in place for 3.0L TDI V6 engines). The maximum funding amount will not exceed $10.033 billion and is dependent on how many customers participate in the program Customers can choose to sell back their vehicle to Volkswagen or terminate their lease without penalty, or, if a modification is approved, choose to have their vehicle modified free of charge and keep it. Customers who select any of these options will also receive a cash payment from Volkswagen.
  • Invest $2.7 billion over three years into an environmental trust to remediate excess nitrogen oxide (NOx) emissions from rigged 2.0L TDI vehicles.
  • Spend $2.0 billion over the next 10 years in zero-emissions vehicle (ZEV) infrastructure, access, and awareness initiatives.

The following 2.0L TDI models are included in the settlement program:

  • Volkswagen Beetle (2013-2015)
  • Volkswagen Golf (2010-2015)
  • Volkswagen Jetta (2009-2015)
  • Volkswagen Passat (2012-2015)
  • Audi A3 (2010-2013, 2015)

No deal for the Canadian market has been announced so far.