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Volkswagen reaches $290M Canadian diesel settlement

Volkswagen reaches $290M Canadian diesel settlement
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Volkswagen admitted it had sold more than 11 million vehicles around the world equipped with software designed to dupe emissions-testing equipment.   (JEFF KOWALSKY / AFP/GETTY IMAGES)  

Fri., Jan. 12, 2018

Volkswagen has reached a $290.5-million deal to settle claims in Canada covering 20,000 3.0-litre Volkswagen, Audi and Porsche diesel vehicles that were caught up in an emissions cheating scandal.

The agreement was reached by Volkswagen and Canadian class counsel in consultation with the Commissioner of Competition.

In addition to the proposed class settlement, which is subject to court approval, Volkswagen Group Canada has agreed to pay a $2.5-million civil penalty.

If approved, cash payments will be made to roughly 15,000 owners and lessees of model year 2013-2016 Volkswagen, Audi and Porsche 3.0L diesel vehicles who receive the recall for an emissions repair as well as an extended emissions warranty.

Payments will also be made to owners and lessees of affected model year 2009-2012 vehicles, as well as additional options that include buyback, trade-in, early lease termination or, if approved by the U.S. EPA and available by recall in Canada, a modification to reduce emissions.

The agreement follows a settlement deal last year covering Volkswagen and Audi vehicles with 2.0-litre diesel engines.

In 2015, the U.S. Environment Protection Agency issued notices of violation against the carmarker, accusing Volkswagen of equipping about 482,000 2.0-litre diesel engine cars and 10,000 of its 3.0-litre diesel engine vehicles in its Volkswagen, Audi and Porsche models with software designed to dupe emissions-testing equipment.

The German automaker admitted it had sold more than 11 million vehicles around the world equipped with the software.

The emissions scandal cause a plummet in Volkswagen stock, and its then CEO, Martin Winterkorn, stepped aside shortly after it came to light.

The company’s share price has since recovered, though, as it has made major investments in electric vehicles, including $40 billion (U.S.) over the next five years to develop automotive technology for an era of electric robo-taxis.
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