Report: VW Will Offer to Buy Back 500,000 Diesel Cars
A solution to dieselgate may be just around the corner
Federal regulators gave Volkswagen until April 21 to come up with a suitable solution for its diesel cars, and that just may have happened. According toReuters, VW and U.S. officials have finally agreed on a plan to buy back certain diesels affected by the emissions scandal.
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VW will offer to buy back up to 500,000 diesel cars sold in the U.S., two people familiar with the matter said. The buy-back offer will be available on 2.0-liter diesel vehicles, including the VW Jetta, VW Golf, and Audi A3. It will not include 3.0-liter diesels, including Audi and Porsche SUVs, that have also been found to have cheat devices for fooling emissions controls.
In addition to the buy-backs, VW may also offer to repair the diesel cars, if U.S. regulators approve a fix.
How will this affect consumers? Owners will reportedly have about two years to decide whether they want to sell their vehicles back or have them fixed. Either way, they will receive some form of cash compensation.
Owners who choose to sell back their cars will receive the estimated value of their vehicle from before the emissions scandal erupted in September 2015. Not only that, but VW is setting up a compensation fund that would give VW owners an additional cash payment for their trouble.
The compensation fund will likely cost VW more than $1 billion. And there's no telling how much it will cost to buy back the 500,000 vehicles. We also recently heard VW will soon up its forecast for costs related to the emissions scandal. It's unclear if VW will be able to resell the cars it buys back.
Starting in January, we heard reports that VW was already considering a buy-back plan as a possible solution to dieselgate. Meanwhile, VW has declined our request for comment.
Source: Reuters
When I tell people I write about cars, the most common reply I receive is “Really?” I guess I never strike people as a car type as I drive down the freeway in the right lane going 60 mph in my old SUV. My gripes about driving in city traffic and fast drivers don’t help my case, either. For a time, the only cars I liked were old cars. Not old as in "classic" or "vintage," but as in well-worn. My first appreciation of cars came when I drove a very old Ford pickup. It wasn't perfect: I used a booster seat to reach the gas pedal, and the turn signal once fell off in my hand as I was learning to drive. But the thing I valued most was the memories. It took several years for me to truly become a "car person." Being a long-time writer and an avid reader has helped me develop a healthy curiosity and a desire to know how things work. This has made cars one of the most fascinating points of study for me because they are such intricate machines. I am interested in how cars can reach 200 mph, how they can run on hydrogen, and how they can drive and park on their own. I also enjoy learning how cars can solve problems whether it be in the form of reducing pollution, minimizing traffic, or helping people stay connected on the road. Yes, maybe I’m not a gearhead. Perhaps I’m a car nerd. Either way, I very much enjoy writing about cars and helping people stay in tune with the automotive industry. I wouldn't want to be writing about anything else. And don’t get me wrong: I know how to drool over a hot car. I am fascinated by the Tesla Model S, awed by the Lamborghini Veneno, and am hopelessly obsessed with the Audi R8.
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