Dieselgate: Volkswagen Cuts Deal with FTC and Plaintiffs

Volkswagen AG and Volkswagen Group of America announced today that they have reached proposed agreements to resolve outstanding civil claims over dirty diesels as part of the ongoing dieselgate scam on ~78,000 3-liter TDI V6 diesel engine vehicles in the United States that were sold from 2009-2016.

Two agreements have been submitted to the Court for approval: a proposed class settlement with private plaintiffs represented by a Court-appointed Plaintiffs’ Steering Committee on behalf of a nationwide class of current and former owners and lessees of eligible 3.-liter TDI V6 vehicles; and a proposed Consent Order submitted by the U.S. Federal Trade Commission.

TDI Plea

Under the 3-liter TDI plea bargain, Volkswagen has agreed, among other terms, to provide cash payments to all eligible members of the class, and take the following specific actions:

  • Recall and repair, free of charge to the customer, approximately 58,000 affected 2013-2016 Model Year Volkswagen, Audi and Porsche 3.0L TDI V6 vehicles (so-called Generation 2 vehicles) to bring them into compliance with the emissions standards to which they were originally certified, if an appropriate Emissions Compliant Repair is approved by U.S. regulators.
  • Buy back or offer trade-in credit of equal value for, or terminate the leases of, approximately 20,000 eligible 2009-2012 Model Year Volkswagen and Audi 3.0L TDI V6 vehicles (so-called Generation 1 vehicles) or, if approved by U.S. regulators, modify the vehicles to substantially reduce their nitrogen oxide (NOx) emissions to allow eligible owners and lessees to keep them.

Volkswagen will pay up to ~$1.2 billion in benefits for the 3-liter plea bargain, assuming 100% participation in the program, a 100% buyback of all so-called Generation 1 vehicles and availability of an Emissions Compliant Repair for Generation 2 vehicles. Volkswagen claims it will bring affected Generation 2 vehicles to the same emissions standards to which the vehicles were originally certified.

If Volkswagen is unable to obtain an approved Emissions Compliant Repair for eligible Generation 2 vehicles, it will offer to buy back or provide trade-in credit of equal value for, or terminate the leases of Generation 2 vehicles. VW may also seek approval by U.S. regulators to offer customers a modification to substantially reduce their NOx emissions.

The 3-liter TDI plea deal also includes a proposed Consent Decree reached with the U.S. Department of Justice (DOJ) on behalf of the Environmental Protection Agency (EPA) and with the State of California by and through the California Air Resources Board (CARB) and the California Attorney General.

About Kenneth Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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1 Response to Dieselgate: Volkswagen Cuts Deal with FTC and Plaintiffs

  1. Autocrat says:

    Volkswagen on Appointment of Larry D. Thompson as Independent Compliance Monitor under the terms of its settlements with the United States government. Volkswagen Pleads Guilty on Felony Charges in Dieselgate

    “Volkswagen welcomes the appointment of Larry D. Thompson to this new position, and we intend to cooperate fully with his important work. (The law breakers had no choice here – editor)

    “We have taken significant steps to strengthen accountability, enhance transparency and build a better company and we look forward to working closely with Mr. Thompson as we press forward with the biggest change process in Volkswagen’s history,” said Ms. Hiltrud Werner, Board Member of Integrity and Legal Affairs at Volkswagen AG. (VW had no choice here – editor)

    Under the court dictated settlement, which critics deemed a sell out to corporate interests, Thompson will be an Independent Compliance Monitor and Independent Compliance Auditor, under the terms of Volkswagen’s plea agreement with the United States Department of Justice (DOJ) and a separate Consent Decree with the DOJ on behalf of the U.S. Environmental Protection Agency, respectively.

    Thompson will oversee and monitor the company’s compliance with the terms of its settlements for a period of three years, including monitoring what is described as an enhanced compliance and ethics program.

    Larry D. Thompson joined the U.S. law firm of Finch McCranie in Atlanta, Georgia, as Counsel in July 2015 and is the former U.S. Deputy Attorney General (2001-2003), the second highest ranking position in the U.S. Department of Justice. He currently serves as the John A. Sibley Professor of Corporate and Business Law at the University of Georgia School of Law.

    Thompson earned his Bachelor’s degree at Culver-Stockton College in Canton, Missouri, his Master’s degree at Michigan State University – currently under scrutiny for ignoring what appears to be egregious sexual harassment by its sports programs – and his law degree at the University of Michigan.

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