By Tom Davis
Ajax, Ontario -- January 15, 2018 -- Volkswagen has agreed to a settlement worth up to $290.5 million in Canada after diesel vehicles under the Volkswagen, Audi and Porsche brands were caught up in an emissions cheating scandal.
The agreement, which is still subject to court approval, will see the company make cash payments to owners of about 20,000 3.0-liter vehicles across the country after the settlement was reached by the Canadian class counsel in consultation with the Commissioner of Competition. The company has also agreed to pay an additional $2.5 million civil penalty.
“This is an important milestone towards making things right for all of our customers with affected diesel vehicles in Canada,” Daniel Weissland, President and CEO of Volkswagen Group Canada, said in a statement.
The cash payments will be made to around 15,000 owners and lessees of model year 2013-2016 Volkswagen, Audi and Porsche 3.0L diesel vehicles, as well as 5,000 owners and lessees of affected model year 2009-2012 vehicles.
Those affected will receive a recall for an emissions repair as well as an extended emissions warranty. The agreement also includes additional options such as buyback, trade-in, early lease termination or, if approved by the US Environment Protection Agency (EPA) and available by recall in Canada, a modification to reduce emissions.
The agreement follows a settlement deal last year covering Volkswagen and Audi vehicles with 2.0-litre diesel engines. In 2015, the US EPA issued notices of violation against the carmarker, accusing Volkswagen of equipping about 482,000 2.0-litre diesel engine cars and 10,000 of its 3.0-litre diesel engine vehicles in its Volkswagen, Audi and Porsche models with software designed to dupe emissions-testing equipment.
The German OEM admitted it had sold more than 11 million vehicles around the world equipped with the software.
More information about the settlement can be found at vwcanadasettlement.ca.