Volkswagen to buy back 5 lakh defeat device equipped cars
Volkswagen AG has reached a settlement with the concerned U.S. authorities for its involvement in the ongoing emissions scandal. As a part of the deal, Volkswagen is offering to buy back around five lakh defeat device equipped diesel cars. The carmaker has also agreed to set up a compensation fund for owners.
According to reports, Volkswagen AG is likely to tell a San Francisco federal judge on April 21, 2016 that it will buy back half a million of its diesel vehicles which emit more Nitrogen Oxide (Nox) than legally permitted. The carmaker will buy back some Jetta, Golf and Audi A3 models . As of now, the buy back policy proposed by Volkswagen AG does not include vehicles powered by its 3.0-litre engine which were also found to be equipped with emissions cheating device.
Image used for representative purpose
The proposed compensation fund is rumored to offer one billion US dollars over the cost of the buy back. However, the intricate details such as the amount of money a vehicle owner will receive haven't been decided yet. It is being reported that the company is also planning to offer repairing its affected vehicles.
As a part of the proposed deal, Volkswagen will compensate those owners in cash who either opt for buy back or repair. Those owners who opt for the buy back policy will not only be paid the estimated current value of their vehicle but also receive an additional amount. VW vehicle owners are likely to get around two years time to decide whether they wish to opt for buy back or repair policy.
The settlement hasn't been finalised yet. The final deal could change before a formal public announcement is made.
More from OVERDRIVE on the Volkswagen emissions scandal
Volkswagen emissions scandal: Allianz to file lawsuit
Volkswagen emissions scandal: U.S. state of Kentucky sues Volkswagen AG
Volkswagen emissions scandal: Former CEO was told about defeat device
Volkswagen USA CEO Michael Horn resigns
Volkswagen emissions scandal: US Justice Department sends subpoena under bank fraud law
Starts Rs 30.5 Lakhs
1968cc
Automatic
142.7
320
20.38 Kmpl
Starts Rs 14.78 Lakhs
1390cc
Manual
122
200
14.69 Kmpl
Related Stories
Top Stories
Latest Videos
Most Popular
- Budget Sportbike Showdown: Kawasaki Ninja 500 vs Aprilia RS 457 vs Yamaha YZF-R3
- 2014 Triumph Daytona 675 vs 2024 Kawasaki ZX6R - A Decade of Evolution in Supersport Motorcycles
- Mumbai-Pune Expressway speed restrictions updated
- Nissan Magnite EZ-Shift review - is the AMT any good?
- Nitin Gadkari states that tax on Hybrids should be reduced to 12 percent in the coming future