VW agrees to pay $200m to US pollution reduction fund as part of 3.0 TDI dieselgate settlement

VW agrees to pay $200m to US pollution reduction fund as part of 3.0 TDI dieselgate settlement

It’s more money out of VW’s pocket, but it’s at least one more dieselgate settlement down. Reuters reports Volkswagen AG has agreed to pay more than US$200 million into a fund created to cut diesel pollution, as part of its agreement over about 80,000 3.0 litre diesel vehicles that emitted more than the US legal limit, according to a person briefed on the settlement.

The agreement is expected to be announced this week, and is in addition to the $2.7 billion that VW had agreed to pay to offset emissions from about 475,000 2.0 litre diesel vehicles. Last Friday, US District Judge Charles Breyer said the parties have made “substantial progress and I am optimistic that there will be a resolution.”

The parties in the weeks-long settlement talks are VW, the suing owners and the US Federal Trade Commission. A sticking point over a comprehensive deal has been how much the carmaker will agree to offer owners in compensation for getting vehicles repaired or selling them back. It’s reported that of the 80k 3.0 TDI cars, there will be a buy-back offer for about 20,000 older Audi and VW SUVs and a software fix for 60,000 newer Porsche, Audi and VW cars and SUVs.

VW agrees to pay $200m to US pollution reduction fund as part of 3.0 TDI dieselgate settlement

In June, VW agreed to put $2.7 billion over three years into a trust fund created to cut diesel pollution. The additional $200 million will be added to this fund. American states can use the money to replace and scrap or retrofit older vehicles with new models equipped with better exhaust cleaning technology.

According to settlement documents, eligible vehicles include tugboats, ferries, freight switchers, transit buses, medium and heavy duty trucks, airport ground support vehicles and ocean going vessels. Schools using buses that are 10 years old or older can use VW money to buy new models, for instance.

With this latest $200m, VW has so far agreed to spend up to $16.7 billion to resolve diesel emissions cheating allegations in the US. Wolfsburg is also expected to face billions in fines as part of a separate potential settlement with the Justice Department to resolve an ongoing criminal investigation and a civil suit alleging civil violations of the Clean Air Act.

VW agrees to pay $200m to US pollution reduction fund as part of 3.0 TDI dieselgate settlement

In June, the German carmaker agreed to spend up to $10.03 billion and offered to buy back 475,000 2.0 litre vehicles and offer compensation of $5,100 to $10,000 per owner. VW began buying back vehicles last month and there are reports of owners bringing stripped out cars to dealerships.

The 2.0 TDI cars have software that allowed them to evade emissions rules in testing and emit up to 40 times the legally allowable emissions in normal driving. The 3.0 TDIs have an undeclared auxiliary emissions system that allowed them to emit up to nine times allowable limits. Since late 2015, VW has been barred from selling any diesel cars in the US.

Separately, parts supplier Bosch is expected to settle a lawsuit filed by US dieselgate affected owners for more than $300 million. Owners sued the German vendor in 2015 claiming the company helped the “defeat device” software used by VW to evade US emissions tests. The lawsuit claimed that Bosch was a “knowing and active participant” in the cheating, to which the company rejected as “wild and unfounded.”

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.



  • Let’s hope the money is really used for pollution reduction since US is the biggest pollutor in the world. The upcoming president don’t even believe in climate change being caused by industrial pollution.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Same L0rr on Dec 20, 2016 at 11:42 am

    Wow.. Volkswagen using TDI engine now. But still using DSG right? Haha!
    Bad RV. Buy vios better.. Dual VVT-i engine and CVT gearbox!

    Like or Dislike: Thumb up 0 Thumb down 2
  • Faiz Roslan on Dec 20, 2016 at 1:19 pm

    fortunately, VW has never been able to cheat the Msian government in meeting their requirements. The competency and enforcement here is so rigid and thorough they couldn’t even try to dare trick the authorities. Instead, they manage to trick US. This shows that the gov is capable to compete world wide

    – Faiz Roslan CEng

    Like or Dislike: Thumb up 1 Thumb down 2
    • Mikey on Dec 21, 2016 at 1:47 pm

      The subject matter here is DIESEL-gate settlement. VW sold Million of Diesel vehicles in the USA so the settlement is between VW & US. It has nothing to do with U. Do U know how many Diesel vehicle VW sold in M’sia ??!

      If you really put your title(CEng) & sign off this piece of “Statement” you just posted, you have Failed Big time & put the entire Engineering fraternity into shame/shambles.

      Stop flaunting your title if you cannot be professional in your comments/facts.

      Like or Dislike: Thumb up 0 Thumb down 0
  • donald trump will say ‘cheaters are losers, i dont buy losers’

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