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    William Maley

    As the Diesel Emits: U.S. Federal Judge Gives the Preliminary Approval On Volkswagen's Settlement

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      Progress is being made on getting the $14.7 billion settlement on the road


    Last month, Volkswagen announced that it had reached a $14.7 billion settlement with the U.S. Government over the illegal software used on the 2.0L TDI engine. But before anything could be put into motion, it had to get the go-ahead from U.S. District Court Judge Charles Breyer.

     

    Yesterday at a hearing in San Francisco, Judge Breyer gave his preliminary approval on the settlement. This now means Volkswagen and Audi can start sending out official notices to owners explaining what happens next. Those hoping for buyback offers will need to wait a few more months. Breyer has scheduled a hearing on October 18th to hopefully give the final approval.

     

    Also, a lawyer for the Department of Justice told the court yesterday that Volkswagen would be proposing a new fix for the 3.0L TDI V6 within the next month.

     

    Source: Reuters, Volkswagen

     

    Press Release is on Page 2


     

    VOLKSWAGEN ANNOUNCES PRELIMINARY APPROVAL OF 2.0L TDI SETTLEMENT PROGRAM IN THE UNITED STATES

     

    Wolfsburg / Herndon VA 2016-07-26 -- Volkswagen AG announced today that Judge Charles R. Breyer of the United States District Court for the Northern District of California has granted preliminary approval of the settlement agreement reached on June 28 with private plaintiffs represented by the Plaintiffs’ Steering Committee (PSC) to resolve civil claims regarding eligible Volkswagen and Audi 2.0L TDI vehicles in the United States.

     

    Individual class members will now receive notification of their rights and options under the agreement. Volkswagen will begin the settlement program immediately after the Court grants final approval to the class settlement, which is anticipated on October 18, 2016.

     

    Under the proposed settlement, eligible customers will have two choices: (1) they can sell back their vehicle to Volkswagen or terminate their lease without an early termination penalty, or, (2) keep their vehicle and receive a free emissions modification, if approved by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). Customers who select any of these options under the settlement will also receive a cash payment from Volkswagen. More information about the program can be found at www.VWCourtSettlement.com.

     

    Volkswagen appreciates the constructive engagement of all the parties, under the direction of Judge Breyer and with the active participation of Special Master Robert S. Mueller III, as the settlement approval process moves forward. The parties believe that the proposed settlement program will provide a fair, reasonable and adequate resolution for affected Volkswagen and Audi customers.

     

    Notes to Editors

     

    The following 2.0L TDI engine vehicles are included in the proposed 2.0L TDI settlement program:

     

    VW Beetle VW Golf VW Jetta VW Passat Audi A3

     

    2013- 2015 2010-2015 2009-2015 2012-2015 2010-2013; 2015

     

    Volkswagen continues to work closely with the EPA and CARB on an approved emissions modification for each of the 2.0L TDI engine vehicles listed above. Volkswagen is also trying to secure approval of a technical resolution for affected vehicles with a V6 3.0L TDI engine as quickly as possible.

     

    In addition to the proposed class settlement, Volkswagen has entered into a separate Consent Decree with the United States Department of Justice (acting on behalf of the EPA), CARB and the California Attorney General and a separate Partial Stipulated Order for Permanent Injunction and Monetary Judgment with the United States Federal Trade Commission regarding 2.0L TDI vehicles. Volkswagen has also resolved current and potential consumer protection claims of 44 U.S. states, the District of Columbia and Puerto Rico.

     

    The agreements are not an admission of liability by Volkswagen. By their terms, they are not intended to apply to or affect Volkswagen's obligations under the laws or regulations of any jurisdiction outside the United States. The company continues to work to resolve other outstanding legal matters in the United States.

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    Wonder how many auto's will be fixed versus buying back? My gut tells me VW will attempt to minimize buying the auto back and going with the fix to minimize their cost. Yet I suspect most owners will want a buy back. Going to be interesting to see how this plays out.

     

    I still think as Europe pushes for a US style solution that VW and Diesel will continue to dwindle and eventually dye as they move to Hybrids, plug-in Hybrids, EVs and more efficient Petrol models through Turbocharging or variable Supercharging.

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    But the solution doesn't EVEN WORK!!!

    Exactly, how do you approve a solution that only decreases emissions by 80% still leaving you greatly larger pollution out the tail pipe compared to everyone else. Plus can you imagine the resale value on these auto's, talk about cheap and dirty.

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