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Dieselgate, US agreement for Volkswagen

Dieselgate, US agreement for Volkswagen

Volkswagen has managed to reach an agreement to make more than 80 three-liter vehicles that still circulate on American roads compliant with the law, violating the emission standards of the Environmental Protection Agency (the EPA); those cars had been excluded from the maxi settlement for 14,7 billion dollars reached last June between the German group and the American Justice concerning over 500.000 cars with two-liter diesel engines produced from 2009 to 2015 (the so-called dieselgate had exploded in September 2015). The announcement came from Judge Charles Breyer, who on Monday had postponed (for the umpteenth time) a hearing with the intention of allowing "extraordinary coordination between the parties".

Volkswagen has decided to buy back 20.000 cars, defined as Generation 1 (they include the VW model called Tourag and the Audi model called Q7 produced between 2009 and 2012); in this case, the group offers the buyback or an adjustment to those who own them. Generation 2 vehicles include all other VW, Audi and Porsche branded cars; in this case the group says it can fix them to bring them into compliance with the law and therefore a buyback is not necessary; however, the go-ahead from the authorities is needed, without which the group will be forced to buy back these cars as well.

Those who bought the German group's cars covered by the agreement will be offered a "substantial compensation" but Judge Breyer did not provide numbers, which could emerge at a hearing scheduled for Thursday. The company will also pay $25 million to the California Air Resources Board in remediation for environmental damages and is committed to introducing zero-emission vehicles in California.

In addition to the agreement in the USA, Volkswagen has agreed to pay about 1,6 billion dollars to buy back or fix about 105 polluting diesel vehicles in Canada. The Canadian plan offers each customer between C$5.100 and C$5.950 in compensation and the choice of buying back the vehicle or having it recalled. Last June, the German group had agreed a similar deal in the US, spending about 10 billion dollars for 475 vehicles. In total, Volkswagen has paid out more than $18 billion to date on Dieselgate issues in North America.

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