Volkswagen reaches agreement to settle all claims related to the NOx emissions scandal in the USA

Volkswagen announced today that the company has reached an agreement with U.S. Environmental regulators to solve all civil claims related to the 3.0L TDI V6 diesel engine vehicles involved in the false level of emissions scandal that has shaken Volkswagen operations and clients around the world.

Adopted under the form of proposed Consent Decree, the pact is subject to the approval of Judge Charles R. Breyer of the United States District Court for the Northern District of California, who presides over federal Multidistrict Litigation (MDL) proceedings related to the diesel matter in the United States. The proposed agreement would allow Volkswagen to recall more than 75% of affected 3.0L TDI V6 vehicles to bring them into compliance with the emissions standards to which they were certified, if appropriate modifications are approved by EPA and CARB.

The mentioned agreement has been signed with the United States Department of Justice (DOJ) on behalf of the Environmental Protection Agency (EPA) and the State of California, by and through the California Air Resources Board (CARB) and the California Attorney General, to resolve civil claims regarding approximately 83,000 affected 3.0L TDI V6 diesel engine vehicles in the United States.

Affected 3.0L TDI V6 customers do not need to take any action at this time, and for more information Volswagen has provided a dedicated link, click here

The emissions scandal bursted on 18th September 2015, when the United States Environmental Protection Agency (EPA) issued a notice of violation of the Clean Air Act to German automaker Volkswagen Group after it was found that Volkswagen had intentionally programmed turbocharged direct injection (TDI) diesel engines to activate certain emissions controls only during laboratory emissions testing. The programming caused the vehicles’ NOx output to meet US standards during regulatory testing but emit up to 40 times more NOx in real-world driving.

Volswagen is to out the following actions under the agreement

Under the terms of the proposed Consent Decree, Volkswagen has agreed to:

1.- Recall approximately 63,000 affected 2013-2016 Model Year Volkswagen, Audi and Porsche 3.0L TDI V6 vehicles with so-called Generation 2 engines to bring them into compliance with the emissions standards to which they were certified, if appropriate modifications are approved by EPA and CARB. If Volkswagen is unable to meet this requirement, it will offer to buy back or terminate the leases of these vehicles and may also seek approval by EPA and CARB to offer customers a modification to substantially reduce their nitrogen oxide (NOx) emissions.

2.- Buy back or terminate the leases of approximately 20,000 affected 2009-2012 Model Year Volkswagen and Audi 3.0L TDI V6 vehicles with so-called Generation 1 engines or, if approved by EPA and CARB, modify the vehicles to substantially reduce their NOx emissions so as to allow eligible owners and lessees to keep them.

3.- Contribute $5 million to the environmental remediation trust that is being established under Volkswagen’s 2.0L TDI settlements in the United States to fully mitigate the lifetime NOx emissions of the affected 3.0L TDI V6 vehicles.

4.-Volkswagen will also pay million to CARB to support the use of zero emissions vehicles (ZEVs) in the State, as part of its agreement with the State of California,

Just for the USA and effective not sooner than Spring 2017

The terms of the proposed agreement will be effective and final only after approval by the Court. At the earliest, approval will occur during Spring of 2017.

By its terms, the proposed Consent Decree announced today is not intended to apply to or affect Volkswagen’s obligations under the laws or regulations of any jurisdiction outside the United States.

Regulations governing NOx emissions limits for vehicles in the United States are much stricter than those in other parts of the world and the engine variants also differ significantly. This makes the development of technical solutions in the United States more challenging than in Europe and other parts of the world, where implementation of an approved program to modify TDI vehicles to comply fully with UN/ECE and European emissions standards has already begun by agreement with the relevant authorities.

Image over the headline.- © Group Volkswagen-Audi.

Related Eastwind links:

Oliver Blume, new CEO for Porsche

Related Eastwind links (Spanish edition):

Escándalo Volkswagen: 683.626 vehículos afectados, tan sólo en España
(Volkswagen scandal: 683.626 vehicles affected, just in Spain)

Volkswagen devolverá los cobros indebidos por PIVE
(Volkswagen will return all undeserved PIVE subventions)

 

 

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