Volkswagen offer to buy back almost 500,000 U.S. diesel cars
Diesel vehicles to be bought back by the German automaker
Volkswagen and U.S. officials have agreed a plan under which the German automaker would offer to purchase back around 500,000 diesel cars which used sophisticated software to avoid U.S. emission rules.
It is understood by informants, that VW met with a federal judge in San Francisco in April, to explain that they have agreed to buy back nearly 500,000 2.0 litre diesel vehicles which were sold in the U.S. and exceeded legally acceptable emission levels.
This deal is supposed to include cars sold since 2009, including some versions of the Jetta sedan, Audi A3 and Golf compact.
After the news came out about the offer, U.S. listed shares of Volkswagen rose by almost 6 percent to $30.95.
In September 2015, Volkswagen admitted to cheating since 2009 on tests for emission levels on eleven million vehicles globally. The shocking admission has damaged the auto marque’s reputation within the automotive industry.
Claims from a third source has said that, as part of the settlement with the U.S. authorities, VW has also agreed on a compensation fund for the car owners.
This is believed to be more than 1 billion pounds, as well as buying back the vehicles, but it is not sure how much every owner may receive. The source added that VW may also offer to fix polluting diesel vehicles, if the U.S. regulators agree to this proposal.
On Wednesday, the EPA, a VW spokeswoman and the Justice Department declined to comment.
Cash compensation will be paid to owners whether they sell their vehicle back or wish to have it fixed. If you sell your vehicle back, you will also receive a cash compensation payment as well as receiving the estimated value of your vehicle, which was decided before the scandal came out in September 2015.
The source said that owners will have about two years to decide if they want to sell back their vehicle or have it repaired. It is not known whether Volkswagen can then resell any of the returned vehicles once they have been adapted to meet emission regulations.
In March 2016, before the buy-back plan was announced, Breyer said: “[the] proposal may include a vehicle buy-back plan or a fix approved by the relevant regulators that allows the cars to remain on the road with certain modifications.”
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