US Approves Fix For Volkswagen Diesel Engines

VW told AFP it was continuing to cooperate with USA authorities to resolve the case.

A settlement could help VW largely move past the scandal, though it still faces lawsuits from US investors and some USA states.

Volkswagenis in ongoing discussions with the U.S. Justice Department to settle an expected criminal case and aiming to complete a deal before the Obama administration ends January 20, the reports specified. If a deal is not reached before then it could significantly delay an agreement, the sources said.

VW faces ongoing lawsuits from at least 19 USA states and a judge ruled this week it must face investor lawsuits in a California court.

The automaker will spend years fixing or buying back vehicles and making investments to boost zero emission vehicle infrastructure and must deposit almost $3 billion in a trust to offset excess diesel emissions.

Volkswagen will reprogram the cars' software immediately.

It involves new software available now. That settlement set aside approximately $10 billion to buy back 2.0L diesels at the price the cars were worth before the scandal was made public, as well as compensate each purchaser with somewhere between $5,100 and $10,000, depending on the make and model of the auto. In reality, the vehicles emitted up to 40 times the legally allowable pollution levels.

The Environmental Protection Agency announced the approval yesterday in a release, which linked to a 5-page approval letter issued jointly by the two agencies. The automaker has been eager to win approval so it can offer fixes and deter some owners who have been intentionally damaging vehicles before selling them back to the company.

Last month, the company announced it reached an additional $1 billion civil agreement with U.S. authorities for a similar on deal covering 80,000 3.0-liter diesel vehicles. The 80,000 three-litre USA vehicles had an undeclared auxiliary emissions system that allowed the vehicles to emit up to nine times allowable limits.

The scandal hurt VW's global business and reputation, and led to the ouster of longtime Chief Executive Martin Winterkorn.

Volkswagen will soon be able to fix some of its diesel cars so that the company can comply with United States vehicle emissions standards. He has pleaded guilty and is cooperating with prosecutors.

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