VW Diesel Settlement Buys Back & Gives Back

vw-golf-tdiVolkswagen has agreed to a settlement to either buy back, fix or release leases of Volkswagen and Audi owners who will also get a cash settlement.

Subject to Court approval of the proposed 2.0L TDI settlement program, Volkswagen has agreed, among other terms, to:

  • Buy back or terminate the leases of eligible vehicles, or provide free emissions modifications (if approved by the EPA and CARB), and also make cash payments to affected current and certain former owners and lessees.
    • Volkswagen will establish a single funding pool to cover the 2.0L TDI settlement program. The maximum funding amount will not exceed $10.033 billion and is dependent on how many customers participate in the program and which option they choose if proposed modifications are approved.
    • 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.
    • An eligible vehicle’s value for a buyback will be determined based on the Clean Trade-In Value as published in the September 2015 edition of the NADA Used Car Guide, with adjustments for factory options and mileage.
  • Support the following environmental programs in the United States by agreement with the EPA and CARB:
    • Pay $2.7 billion over three years into an environmental trust, managed by a trustee appointed by the Court, to remediate excess nitrogen oxide (NOx) emissions from 2.0L TDI vehicles.
    • Invest $2.0 billion over 10 years in zero emissions vehicle (ZEV) infrastructure, access and awareness initiatives.

To support NOx mitigation the money could go to programs like Replace Your Ride.


Volkswagen will begin the settlement program as soon as the Court grants final approval to the settlement agreements. At the earliest, approval will occur in the fall of 2016. Potential claimants under the class settlement do not need to contact Volkswagen or Audi, or their dealers, at this time. Individual class members will receive extensive notification of their rights and options (including the option to “opt out” of the settlement agreement) if the Court grants preliminary approval of the proposed class settlement at a hearing scheduled to take place on July 26, 2016.

More information about the proposed 2.0L TDI settlement program, including the settlement agreements in full, can be found at www.VWCourtSettlement.com or www.AudiCourtSettlement.com.

The separate agreements with U.S. states, the District of Columbia and Puerto Rico resolve existing and potential consumer protection claims under state statutes governing unfair and deceptive acts and practices (UDAP) in relation to more than 534,000 2.0L and 3.0L TDI vehicles originally sold or leased in the participating states and districts before September 18, 2015. They were executed by Volkswagen AG, Volkswagen Group of America, Inc., Audi of America, LLC, Volkswagen Group of America Chattanooga Operations, LLC and Audi AG, as well as Dr. Ing. h.c. F. Porsche AG and Porsche Cars North America, Inc.

Volkswagen will pay approximately $583 million to the signatories and $20 million to the National Association of Attorneys General (NAAG) for use by state attorneys general for consumer protection oversight, training and enforcement, and for the reimbursement of costs and expenses related to this matter. Participating states include California, Florida, Illinois, New York, Pennsylvania and Texas. At this point, the signatories do not include Arizona, New Jersey, New Mexico, Oklahoma, Vermont and West Virginia, which have 30 days to join in the settlement.

Eligibility for the compensation transfers to the new owner. Former owners who sold their VW diesels between Sept. 15, 2015, and June 28, 2016, are also eligible for some compensation.

Volkswagen in a new release stated that continues to work to resolve outstanding legal matters in the United States. These include civil claims by the DOJ, FTC and private plaintiffs represented by the PSC related to 3.0L TDI vehicles and various other putative class action claims, civil penalties sought by the EPA and potential state environmental claims, and any criminal investigations by the DOJ.