The settlement would give US consumers the choice: having Volkswagen buy back the rigged cars or repair them.
ADVERTISEMENTVolkswagen has reached a framework deal with US authorities to compensate the owners of about half a million cars that cheated diesel emissions tests, a federal judge said on Thursday (April 21).
U.S. Judge Charles Breyer said the settlement will give consumers the choice between having the company buy back the cars or fix them.
It was not immediately clear how much each owner would get – the judge only said the proposed compensation was “substantial”.
Bloomberg reported the settlement would cost the German carmaker at least 10 billion dollars, or close to 9 billion euros.
The agreement includes setting up a special fund to make up for the excess pollution caused by the rigged engines and to promote greener technology.
If US authorities sign off the deal, the company will avoid a trial.
European owners of Volkswagen cars are watching.
The worldwide scandal broke last year when US regulators found the company had sold cars with rigged emissions software that enabled them to pollute up to 40 times the legal limits.