Volkswagen has reached a deal with U.S. regulators to repair or buy back a total of 83,000 vehicles from the VW, Audi and Porsche brands equipped with the 3.0-liter V6 TDI engine. The deal comes four months after a larger agreement was formally reached with U.S. regulators over the fate of 485,000 2.0-liter TDI vehicles from VW and Audi.

Under the agreement, VW will recall and repair more than 75 percent of the affected vehicles to bring them into compliance if the presented modifications, which are not yet available, are eventually approved by the EPA and the California Air Resources Board. This includes approximately 63,000 VW, Audi and Porsche models from the 2013-16 model years equipped with the Generation 2 TDI engines.

VW also plans to buy back approximately 20,000 VW and Audi vehicles from the 2009-12 model years, or modify their NOx emissions to allow eligible owners and lessees to continue using them,  if possible

The agreement covers a total of six Audi models, one VW model and one Porsche model: 2014-16 Audi A6, 2014-16 Audi A7, 2014-16 Audi A8, 2014-16 Audi A8L, 2014-16 Audi Q5, 2009-15 Audi Q7, 2013-2016 Porsche Cayenne Diesel and the 2009-16 VW Touareg. Vehicles equipped with the Generation 1 engine include the Touareg and the Audi Q7; these two models from the 2009 through 2012 model years will be bought back or have their leases terminated unless VW can come up with a solution to reduce their nitrogen-oxide output. It is not known at this point whether VW will be able to come up with a fix.

VW has also reached an agreement with the plaintiffs’ committee to compensate owners in all circumstances, whether the vehicles are bought back or repaired, though it is still negotiating certain aspects of the agreement and did not share details of a compensation plan.

“As reported today by Judge Breyer, we have reached an agreement in principle with Volkswagen on substantial aspects of relief for 3.0-liter TDI Generation 1 and Generation 2 class members, and we are working to resolve remaining issues,” said Elizabeth Cabraser, court-appointed lead counsel for the Plaintiffs’ Steering Committee. “We will have no further comment, as the court has instructed the parties that its confidentiality order still applies.”

VW is expected to create a similar claim-processing operation to work with individual owners — the system should be in place before buybacks of the eligible vehicles begin in spring 2017. As with the 2.0-liter TDI program, the agreement must be ratified by the court in order for compensation and a buyback program to start.  
 

Under the terms of the deal, VW will contribute $225 million to an environmental remediation trust already created by the 2.0-liter TDI program, in addition to $25 million to CARB to promote zero-emissions vehicles in the state of California.

“The agreement announced by the court today between Volkswagen and U.S. environmental regulators is another important step forward in our efforts to make things right for our customers, and we support the efforts of the court to bring about a fair and reasonable resolution of remaining 3.0-liter TDI V6 claims as quickly as possible,” said Hinrich J. Woebcken, president and CEO of Volkswagen Group of America Inc. “We are committed to earning back the trust of all our stakeholders and thank our customers and dealers in the United States for their patience as the process moves forward.”