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Volkswagen Reveals Settlement for 3.0L TDI Diesel Owners

Update: We received a reply from VW Canada regarding their solution for affected vehicles here; see below

Volkswagen has moved another step forward in the slow-moving process of dealing with the fallout from its diesel emissions scandal.

The latest news is an announcement on how it will deal with about 78,000 vehicles in the United States using the 3.0-litre TDI V6 diesel engine used in a range of Volkswagen and Audi models, and the answer depends on the model year of each vehicle.

Cars sold as 2009 through 2012 models (dubbed Generation 1 in the settlement) will be bought back or have leases terminated, and those produced from 2013 through 2016 (Generation 2) will be recalled and modified to meet emissions rules at no cost to the owner -- "if an appropriate Emissions Compliant Repair is approved by U.S. regulators." If that turns out to be impossible, it will offer a buy-back, trade-in credit or lease termination. California's Air Resources Board (CARB) has already rejected one of VW's potential diesel V6 fixes.

This news comes weeks after a plea bargain settlement between Volkswagen and various U.S. government agencies that also led to six current and former VW executives being charged with various crimes.

The Generation 1 vehicles include the VW Touareg and Audi Q7, and Generation 2 adds the Audi A6, A7, A8, A8L, Q5 and Porsche Cayenne.

Volkswagen of America estimates this latest stage in reconciliation with its diesel owners will cost US$1.2 billion, assuming 100 percent participation in both programs. VW Canada media relations manager Thomas Tetzlaff said "consumer class proceedings are underway regarding affected 3.0L V6 TDI vehicles. Updates will be provided as they become available."