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Volkswagen agrees to $232 million 3.0-liter Canadian emissions settlement


By David Shepardson

(Reuters) - AG has agreed to a settlement worth up to $232 million (C$290.5) with owners of vehicles in affected by its diesel emissions-cheating scandal, the automaker said on Friday.

The agreement provides for cash payments to owners of about 20,000 3.0-liter Volkswagen, and diesel vehicles in and is subject to court approval. The German automaker also agreed to pay a $2.5 million Canadian dollar civil penalty.

"This is an important milestone towards making things right for all of our customers with affected diesel vehicles in Canada," Daniel Weissland, of Group Canada, said in a statement.

Last year, in a similar settlement in the United States, agreed to spend at least $1.22 billion to fix or buy back nearly 80,000 vehicles with 3.0-liter engines. It also agreed to pay owners of vehicles who obtained fixes for excess between $8,500 and $17,000.

In total, the German automaker has now agreed to spend more than $25 billion in North American to address claims from owners, environmental regulators, U.S. states and dealers and to make buyback offers. The company said in September it had set aside $30 billion to address the scandal.

In June 2016, agreed to spend up to $10 billion to buy back or fix 475,000 2.0-liter U.S. vehicles. Also in 2016, agreed to spend up to $2.1 billion Canadian dollars to buy back or fix 105,000 polluting 2.0-liter diesels and compensate owners in

Last month, the and the approved an fix for 24,000 3.0-liter passenger cars. The approved fix entails removing that reduced emission control effectiveness and replacing certain hardware components.

Previously, U.S. regulators approved a fix for 38,000 other 3.0-liter diesels.

VW, Europe's biggest automaker, admitted in September 2015 that it had used to cheat U.S. diesel tests, sparking the biggest crisis in its 80-year history.

(Reporting by in Washington; Editing by Tom Brown)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, January 13 2018. 03:45 IST