Final Approval Given For $1.2 Billion Volkswagen 3.0-Liter Emissions Settlement

U.S. District Court Judge Charles Breyer gave final approval to a settlement worth at least $1.2 billion in the emissions cheating fraud case for Volkswagen, Audi and Porsche 3.0-liter engine vehicles.

Owners of 3.0-liter diesel engine vehicles will have options available to them under the terms of the settlement, depending on whether their vehicles are classified as Generation One or Generation Two.

  • Generation One (Model Years 2009-2012): Owners can sell back or trade-in their vehicles and receive substantial cash compensation ranging from $7,755 to $13,880. Lessees will also be eligible to have their lease terminated and receive cash compensation.
  • Generation Two (Model Years 2013-2016):  Government regulators believe the newer vehicles can be repaired to comply with emission standards to which they were originally certified.  If this is achieved and approved by the EPA and CARB, Generation Two owners will be entitled to that repair, plus substantial cash compensation ranging from $7,039 to $16,114. Lessees are also eligible for this repair plus cash payment. If those repairs do not work, Volkswagen will need to buy the cars back, adding about $4 billion to the cost of the settlement.

This settlement is in addition to an early settlement for vehicles with 2.0-liter engines, and brings Volkswagen’s payouts in these cases to around $17.4 billion.

In the final portion of the case, a $327.5 million settlement with German auto electronics supplier Robert Bosch has also been approved. The U.S. Federal Trade Commission accused the company of helping develop the secret software that Volkswagen used to cheat on U.S. emissions tests. Affected owners of vehicles with 2.0-liter engines will receive an additional $350 in compensation and those with 3.0-liter engines will receive $1,500.

“These settlements will ensure consumers receive fair value for vehicles they purchased in good faith,” said Ben Bailey of Bailey & Glasser’s Charleston, West Virginia, office. “And they also ensure illegally polluting vehicles are either repaired or taken out of service.”

Bailey was appointed last year to serve on the Plaintiffs’ Steering Committee for this multidistrict class-action litigation.

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