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U.S.
District Judge Charles Breyer did not disclose the amount of
owner compensation, which is not included in a $1 billion
settlement announced earlier this week between VW and U.S.
regulators. Half of the compensation will be paid at the time
Breyer gives final approval of the settlement. Some fixes for
the 3.0 liters may not approved until 2018, Breyer said.
Earlier this week, Volkswagen reached the $1 billion settlement
with U.S. regulators, offering to buy back about 20,000 of the
vehicles, fix the remaining 60,000 and pay $225 million into an
environmental trust fund to offset the vehicles' excess
emissions.
The settlement covered luxury VW, Audi and Porsche vehicles with
3.0-liter engines. With the agreement, Volkswagen would spend as
much as $17.5 billion in the United States to resolve claims
from owners as well as federal and state regulators over
polluting diesel vehicles in addition to compensation for the
3.0-liter owners.
Volkswagen spokeswoman Jeannine Ginivan said the automaker was
pleased with the agreement in principle, but said details will
remain confidential for now.
Breyer said the final agreement must be filed with the court by
Jan. 31, and he expects to hold a Feb. 14 hearing to approve the
deal.
The U.S. Federal Trade Commission is also expected to back the
deal, Breyer said.
Volkswagen, the world's No. 2 automaker, could still spend
billions of dollars more to resolve a U.S. Justice Department
criminal investigation and federal and state environmental
claims and come under oversight by a federal monitor.
It is possible a deal could be reached before the end of the
Obama administration, said sources briefed on the matter.
Breyer in October approved VW's earlier settlement worth about
$15 billion with regulators and the U.S. owners of 475,000
polluting diesel vehicles with smaller 2.0-liter engines,
including an offer to buy back all of the cars.
VW lawyer Robert Giuffra said Thursday the automaker has offered
buybacks to nearly 200,000 customers and 104,000 have accepted
the offer at a value of nearly $2 billion.
VW had agreed to pay $5,100 to $10,000 in compensation to each
of the U.S. 2.0-liter owners. If the new settlement follows the
pattern, it could add $400 million to $800 million to the
3.0-liter settlement. But funds from a separate settlement with
German auto supplier Robert Bosch GmbH [ROBG.UL] are expected to
defray VW's compensation costs.
(Editing by Jeffrey Benkoe)
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