Volkswagen will offer the repurchase of 482,000 cars affected in the US – Journal 26

REMEDIES CUSTOMER

Thursday 21 April 2016

a US judge announced Thursday that Volkswagen (VW) has reached an agreement in principle with the environmental authorities in the US, consumers and the state of California on fraud engines souped diesel.

During a hearing in the city of San Francisco, Judge Charles Breyer said the preliminary agreement includes substantial compensation to consumers affected by faking engines and a fund that VW will promote green initiatives in the field of car.

VW is also committed to creating a second fund to alleviate excessive emissions of nitrogen oxides, a product considered carcinogenic by health authorities, souped-emitting engines of the company.

According to the details of the agreement released by the judge, owners of about 500,000 vehicles with engines turbo diesel 2-liter four-cylinder affected by fraud will have the option of keeping their cars after that VW’s fix, sell the car manufacturer or cancel your lease-purchase.

Other 80,000 vehicles equipped with diesel engines turbo 3 liter are not included in the agreement.

In addition to the purchase offer or arrangement, VW is committed to providing a “substantial compensation”, which has not been explained by the judge, owners affected.

According to the judge, the financial details of the agreement have yet to be decided, and set the date of June 21 as the deadline for submission of proposed resolutions.

The agreement relates only to the 482,000 vehicles (VW Jetta VW Golf, VW Passat, VW Beetle and Audi A3) incorporating the four-cylinder engine. Volkswagen still must explain how it will fix the 80,000 affected vehicles of Audi, Porsche and Volkswagen brands with diesel six-cylinder engine souped. It has only emerged that these vehicles will be arranged and not repurchased.

The agreement also refers to non-compliance with environmental regulations and only for the United States. And it is outside the more than 600 court cases against German consortium for fraud since vehicles are advertised as ‘Clean Diesel’, ie clean diesel.

Analysts estimate since only Volkswagen acknowledged the agreement in a brief statement that the cost of buying back both vehicles as possible compensation payment would exceed 11,000 million euros. Volkswagen has only accrued since the scandal broke 6,700 million euros. The same analysts say the group could be provisioned up to 20,000 million from the year 2015. This will be known on Thursday September 28 at the annual conference of the German group results. He also will announce the dividend reduction and the company’s senior management bonus.

In Europe, the German group does not provide compensation to affected users.