SAN FRANCISCO – A nearly $15 billion settlement over Volkswagen’s emissions cheating scandal cleared a key hurdle Tuesday, with a federal judge giving preliminary approval to the deal that includes an option for owners to have the carmaker buy back their vehicles.
U.S. District Judge Charles Breyer called the settlement an “enormous effort” by attorneys from both sides and urged Volkswagen owners who may want to opt out and pursue their own lawsuits to consider the deal’s environmental achievements.
“Because that’s significant, and that’s part of what you’re attempting to achieve in this settlement,” said Breyer, who is overseeing consumer lawsuits and government allegations that Volkswagen’s diesel engines cheated on U.S. emissions tests.
The German carmaker has agreed to spend up to $10 billion buying back or repairing about 475,000 Volkswagens and Audi vehicles with 2-liter diesel engines and paying their owners an additional $5,100 to $10,000 each. Details about the vehicle repairs have not been finalized.
The settlement also includes $2.7 billion for unspecified environmental mitigation and an additional $2 billion to promote zero-emissions vehicles.