According to latest publications Volkswagen AG (ADR) fines in its diesel-emissions scandal could surge another $1 billion as it is heading closer to an agreement to resolve claims related to bigger and luxury diesel vehicles.
Back in summer, German giant finalized a roughly $10 billion transaction to recompense drivers of 475,000 diesel-powered vehicles with 2-liter engines that disrupt U.S. emissions laws. But the parties have taken longer to reach a pact over a smaller number of 3-liter diesel cars.
Reports said Volkswagen, which is closely working with the U.S. authorities, has reportedly agreed to buy-back about 20,000 so-called first-generation cars of the 3-liter model, and to sort the remaining 60,000 second-generation cars.
A VW spokeswoman said Sunday, “the parties are making substantial progress toward a resolution for affected 3.0L TDI V6 vehicles” and that the discussions “remain subject to a confidentiality order of the court.”
Meanwhile a Justice Department spokesman said, “We’re pleased with the progress made in settlement discussions and we’re optimistic for a resolution soon.”
Furthermore Volkswagen, government agencies and plaintiffs’ lawyers are still working to put the 3-liter deal on paper. A federal judge told the parties in court Friday to finalized a transaction, and set another hearing for Monday morning.
However under separate discussions with lawyers for consumers, the 3-liter drivers will also likely get extra compensation irrespective of whether their cars are bought back or adjusted.
The vehicles comprise latest Volkswagen AG (ADR), Audi and Porsche cars and SUV’s. They are generally more dearer than the 2-liter cars and emit lower levels of the prohibited toxins at issue in the diesel cars, which makes the second-generation vehicles possibly easier to bring up to emissions standards.