Would follow a similar agreement reached in June to fix or repair up to 475,000 cars fitted with the 2.0 TDI engine.
Latest report is indicating Volkswagen, the Environmental Protection Agency (U.S.), and California’s Air Resources Board have reached an agreement about how to handle around 79,000 cars powered by the cheating 3.0-litere V6 TDI engine. According to sources close to the matter cited by Bloomberg, the three are about to sign a deal stipulating VW will take the responsibility of fixing around 60,000 vehicles equipped with the problematic turbodiesel engine.
The fix is going to be very easy to apply as the engineers will only have to install a software update for the TDI unit, which was developed by Audi. The same thing can’t be said about approximately 19,000 older cars which would need more than just new software. According to the report, it would be too complex to fix those cars, so VW will have no other way but to buy them back.
By not having to repurchase all of the cars in United States fitted with the dirty 3.0 TDI V6, VW will be able to save a whopping $4 billion USD (about $5.37B CAD), according to people familiar with the matter. However, nothing is official at this point, so things could change in the coming days or weeks. The problems are far from being over for VW since many owners have already sued the company, while the U.S. Federal Trade Commission has also filed a lawsuit, accusing the automaker of false advertising. The FTC and affected owners want to force VW to buy back the cars, but unsurprisingly the company is trying to avoid that as much as possible since it would be very expensive.
As a reminder, VW received the EPA’s stamp of approval back in June to buy back or repairs cars equipped with the 2.0-litre TDI engine in United States. It involves up to 475,000 cars, including models such as the 2009-2015 Jetta, 2010-2015 Beetle, 2012-2015 Passat, 2013-2015 Golf, and also the 2010-2013, 2015 Audi A3. Not only Volkswagen of America is buying back all of those cars, but it’s also going to spend $2.7 billion USD ($3.62B CAD) to fund projects for reducing CO2 emissions, while an additional $2 billion USD ($2.68B CAD) will be spent in the next decade to upgrade the infrastructure and development of EVs. Corroborated with the $10.03 billion ($13.45B CAD) necessary to repurchase the 2.0 TDI-powered cars, VW will have to spend a total of $14.7 billion USD ($19.72B CAD) to settle the issue with the smaller turbodiesel engine in America.
On top of the TDI debacle, the group is also facing new accusations for installing special software to artificially reduce emissions during testing for select Audi gasoline and diesel models fitted with an automatic transmission. VW has admitted this is true, so the company is about to face even more self-inflicted problems.
Source: Automotive News