Volkswagen agrees to fix or buy back 500,000 diesel cars in U.S.
The Volkswagen diesel scandal just got a lot more expensive for the German carmaker.
On Thursday afternoon, Volkswagen agreed to fix or buy back roughly 500,000 of its diesel-powered models in the U.S affected by dieselgate. The agreement is a part of a federal court settlement announced in San Francisco, according to the New York Times.
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VW proposed a repair for the cars, which had been fitted with emissions test-defeating software, earlier this year. However, the California Air Resources Board rejected the repairs because they do not put "vehicles into compliance and reduce pollution."
If no new fix is agreed upon, VW will simply buy back the affected vehicles. Automotive research firm Kelley Blue Book estimates a buy-back in the U.S. could cost $7 billion -- nearly the entire $7.6 billion sum the carmaker set aside to weather the dieselgate storm.
That's not the end of the costs for VW, though. Lawyers are negotiating the amount of fines the carmaker will have to pay as well as the amount of owner compensation.
Following the announced agreement, Volkswagen put out a short press release: "These agreements in principle are an important step on the road to making things right. As noted today in court, customers in the United States do not need to take any action at this time."
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Topics Cars
