Volkswagen has reportedly reached a tentative agreement with U.S. officials in an attempt to resolve long-running emission problems in most of the 500,000 vehicles still waiting for repairs.
The vehicles contain illegal software called defeat devices that provide correct emissions data during official tests, but once back on the roads for normal use the cars revert to a much higher emissions level, specifically nitrogen oxide emissions.
Nitrogen oxide emissions cause all kinds of health problems, which is why U.S. regulators put limits on nitrogen oxide emissions from vehicles. The VW and Audi vehicles emit up to 40 times the legal limits for nitrogen oxides, something that has continued for at least seven years.
Volkswagen has allegedly agreed to buy back 2-liter vehicles affected by defeat devices in the U.S., in addition to offering separate compensation to affected owners. According to the sources close to the talks, the 2-liter models will be affected by the buyback, but it's unknown if 3-liter model owners will see the same offer.
Volkswagen and Audi 2-liter vehicles include the 2009-2016 VW Beetle, Golf, Jetta, Passat and Audi A3 cars which make up about 85 percent of all U.S. VW vehicles needing repairs.
The settlement is expected to be announced at some point today, and it must pass muster with the Justice Department, Environmental Protection Agency and the California Air Resources Board. Further, U.S. District Judge Charles Breyer must approve the agreement.
Talk of a buyback could mean owners would receive book value for their cars in addition to other incentives. There have also been unconfirmed rumors that VW will offer affected owners $5,000 in addition to the offer to buy back the vehicles.
With over 500 class-action lawsuits waiting to be heard, plaintiff attorneys will be interested to read the small print of any agreement with Volkswagen. Early reports say accepting the buyback offer will require signing a release waiver where the owner couldn't sue.