Volkswagen AG has reached settlement
agreements with the United States Department of Justice (DOJ) and the State of
California; the US Federal Trade Commission (FTC); and private plaintiffs
represented by the Plaintiffs' Steering Committee (PSC) to resolve civil claims
regarding eligible Volkswagen and Audi 2-litre TDI diesel engine vehicles in
the US.
Of approximately 499,000 2-litre TDL vehicles
produced for sale in the US, approximately 460,000 Volkswagen and 15,000 Audi
vehicles are currently in use and eligible for buybacks and lease terminations
or emissions modifications, if approved by regulators.
VW will establish a maximum
funding pool for the 2-litre TDI settlement program of $10.033 billion. That
amount assumes 100per cent participation and that 100per cent of eligible
customers choose a buyback or lease termination.
The agreements covering the
proposed 2-litre TDI settlement program are subject to the approval of Judge
Charles R. Breyer of the United States District Court for the Northern District
of California, who presides over the federal Multi-District Litigation (MDL)
proceedings related to the diesel matter.
VW announced also that it
has agreed with the attorneys general of 44 US states, the District of Columbia
and Puerto Rico to resolve existing and potential state consumer protection
claims related to the diesel matter for a total settlement amount of
approximately $603 million.
"We take our commitment
to make things right very seriously and believe these agreements are a
significant step forward," said Matthias Müller, chief executive officer
of Volkswagen AG. "We appreciate the constructive engagement of all the
parties, and are very grateful to our customers for their continued patience as
the settlement approval process moves ahead. We know that we still have a great
deal of work to do to earn back the trust of the American people. We are
focused on resolving the outstanding issues and building a better company that
can shape the future of integrated, sustainable mobility for our
customers."
Three agreements have been
submitted to the Court for its approval with respect to the proposed 2-litre
TDI settlement program: (1) a Consent Decree filed with the Court by the DOJ on
behalf of the Environmental Protection Agency (EPA) and by the State of
California by and through the California Air Resources Board (CARB) and the
California Attorney General; (2) a Consent Order submitted by the FTC; and (3)
a proposed class settlement agreement with the PSC on behalf of a nationwide
settlement class of current and certain former owners and lessees of eligible 2-litre
TDI Volkswagen and Audi vehicles.
The parties believe that the
class settlement as presented to the Court will provide a fair and reasonable resolution
for affected Volkswagen and Audi customers.
VW says it continues to work
expeditiously to reach an agreed resolution for affected vehicles with 3-litre
TDI V-6 diesel engines.
On April 22, 2016,
Volkswagen recognized total exceptional charges of €16.2 billion in its
financial statements for 2015 for worldwide provisions related to technical
modifications and repurchases, legal risks and other items as a result of the
diesel matter. As noted at that time, due to the complexities and legal
uncertainties associated with resolving the diesel matter, a future assessment
of the risks may be different.
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