Economy, Auto

Volkswagen Fined $200m by US Court

VW has begun paying its fine to US regulators.VW has begun paying its fine to US regulators.

Volkswagen AG has agreed to pay just over $200 million to offset emissions from about 80,000 3.0-liter diesel US vehicles, in a landmark payout for the German firm.

The agreement is expected to be announced as early as today, and is in addition to $2.7 billion that VW previously agreed to pay to offset emissions from about 475,000 2.0-liter diesel vehicles.

US District Judge Charles Breyer on Friday delayed a hearing so negotiations can continue over reaching a final resolution on the 3.0-liter vehicles.

A sticking point over a comprehensive deal has been how much VW will agree to offer owners in compensation for getting vehicles repaired or selling them back. Talks among Volkswagen, the US Federal Trade Commission and lawyers for the suing owners have gone on for weeks.

Reuters reported on Nov. 15 that Volkswagen had reached agreement with US regulators for a mix of buybacks and fixes for the 80,000 polluting Audi, Porsche and VW 3.0-liter vehicles. The agreement includes 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, sources told Reuters.

With the $200 million to offset 3.0-liter emissions, Volkswagen has agreed to spend up to $16.7 billion to resolve US diesel emissions cheating allegations. Volkswagen 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.

In June, VW agreed to spend more than $10 billion and offered to buy back 475,000 2.0-liter vehicles and offer compensation of $5,100 to $10,000 per owner. VW began buying back vehicles last month.

The 2.0-liter diesel vehicles have software that allowed them to evade emissions rules in testing and emit up to 40 times the legally allowable emissions in onroad driving. The 3.0-liter vehicles have an undeclared auxiliary emissions system that allowed them to emit up to nine times allowable limits.

VW has been barred since late 2015 from selling any US diesels.

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