VW had until today to reach a solution with the US Justice Department, the Environmental Protection Agency (EPA), and the California Air Resources Board (CARB) in regards to how it will properly address the 580,000 diesel-powered vehicles sold in the US that came equipped with software that "cheated" emissions tests. Such vehicles were found to emit as much as 40 times the allowable federal amount of emissions. The deadline has been pushed back a month.
VW had already requested a two-week extension on Thursday's deadline, Automotive News Europe says, citing German publications, and it may be subject to daily fines and other penalties. One solution being floated is for VW to buy back the affected vehicles, though that would cost about $9.4 billion, Automotive News Europe says, citing Bloomberg Intelligence. And that method wouldn't address funding that some regulators are asking for in order to pay for the environmental damage such vehicles may have caused.
VW told AutoblogGreen that the judge stated that he was pleased with the substantial progress made by all parties. The automaker also said in a statement that:
VW was sued by the US Justice Department in January for damages that were estimated to be worth as much as $18 billion, though that figure was later revised upward to as much as $46 billion for its violations, though a settlement may bring that number down. Diesel vehicles made by VW as well as its Audi and Porsche divisions remain in stop-sale mode in the US. Additionally, reports surfaced last week that a group Volkswagen investors sued the automaker for damages worth about $3.6 billion, alleging that VW didn't inform them of the diesel-emissions scandal.
Volkswagen is committed to resolving the US regulatory investigation into the diesel emissions matter as quickly as possible and to implementing a solution for affected vehicles, as we work to earn back the trust of our customers and dealers and the public. We continue to make progress and are cooperating fully with the efforts undertaken by Judge Breyer, working through Director Mueller, to bring about a prompt and fair resolution of the US civil litigation.