Volkswagen reaches an agreement in principle in US over diesel emissions issue; binding consent decrees to come
21 April 2016
Volkswagen AG confirmed that it has reached an agreement in principle with the Department of Justice (Environmental Division); the US Environmental Protection Agency (EPA); and the California Air Resources Board (CARB); with the full involvement of the Federal Trade Commission (FTC) concerning the diesel emissions issue. The agreement in principle will be incorporated into binding consent decrees by the Department of Justice and the FTC in the coming weeks.
The agreement includes buyback offers for 482,000 2.0-liter TDI diesel vehicles and a possible fix—if regulators agree on it—or the cancellation of an outstanding lease, according to US District Court Judge Charles Breyer, who is presiding in the case.
Furthermore, Volkswagen said it has reached an agreement on the basic features of a settlement with the class action plaintiffs in the lawsuit in San Francisco. This agreement will be incorporated into a comprehensive settlement in the coming weeks.
The arrangements in the making in the United States will have no legal bearing on proceedings outside of the United States.
Ongoing investigations by the Department of Justice, Criminal Division, and the State Attorneys General are not affected by these agreements in principle.
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