VW Diesel Settlement

German automaker Volkswagen is proving once again that in the long run, cheating doesn’t pay.

Volkswagen captured a dominant share of the U.S. diesel car market from sales of its 2.0 TDI cars, touted as having an unbeatable package of performance, fuel economy, and low emissions. It turned out, though, that VW diesels were too good to be true when the company announced in fall 2015 that it used software to cheat on emissions testing.

Instead of the clean emissions VW bragged about, its TDIs in fact emit levels of nitrous oxide well above legal limits. VWs shocking cheating admission set the stage for a legal battle with regulators, dealers, and owners that has every indication of being extremely costly.

On June 28, 2016, VW announced terms of a proposed settlement that it hopes will make things right with U.S. TDI owners. While the deal still needs judicial approval, its roughly $15 billion outlay should go a long way towards smoothing things over with customers deceived in the Dieselgate scandal.

Settlement Terms

A funding pool worth a maximum of just over $10 billion will be established to compensate approximately 475,000 eligible owners of 2.0L TDI cars. The pool will provide owners with:

  • A one-time cash payment worth $5,100 to $10,000 per vehicle; plus
  • Vehicle buyback (or lease termination) OR free repairs to bring vehicle into emissions compliance

The proposed settlement also includes $4.7 billion earmarked for an environmental remediation fund and initiatives to promote zero emissions vehicles (ZEVs) in the U.S. An additional $603 million will settle consumer protection claims with state attorney generals.

Full details of the settlement, which is pending initial approval at a hearing set for July 28, 2016, are available at www.VWCourtSettlement.com or www.AudiCourtSettlement.com.

Once the deal is approved, customers will have the choice to “opt out” of the settlement and pursue a private compensation claim against Volkswagen (or continue to drive their vehicle as it is and do nothing).

In case you’ve forgotten, the following 2.0L TDI vehicles are affected by Dieselgate:

  • Jetta (2009-2015)
  • Jetta Sportwagen (2009-2014)
  • Beetle (2013-2015)
  • Beetle Convertible (2013-2015)
  • Audi A3 (2010-2015)
  • Golf (2010-2015)
  • Golf Sportwagen (2015)
  • Passat (2012-2015)

3.0L TDIs are also a part of Dieselgate but aren’t a part the settlement announced June 28. The larger 6-cylinder diesel vehicles with cheating software are expected to be addressed at a later date.

Questions About Dieselgate? ClassAction.com Can Help.

There are a lot of moving parts to the Dieselgate scandal and settlement. If you have questions about what to do next, or you’re interested in filing a lawsuit, get in touch with ClassAction.com for a free consultation.