VW Reaches $1B Settlement for 3.0L Diesels
Volkswagen has reached an agreement to settle claims relating to its 3.0L V-6 TDI engines, committing to buy back a quarter of those vehicles. The automaker will also set aside $225 million for emissions reduction, and pay $25 million to support the use of zero emission vehicles (ZEVs) in California.
HERNDON, Va. — Volkswagen has reached an agreement to settle claims relating to its 3.0L V-6 TDI engines, committing to buy back a quarter of the vehicles. The automaker will also set aside $225 million for emissions reduction, and pay $25 million to support the use of zero emission vehicles (ZEVs) in California.
The settlement, which awaits final approval, is expected to cost Volkswagen $1 billion, according to the Associated Press. In October, Volkswagen agreed to settle claims around its 2.0L engine for $14.7 billion.
The Dec. 20 settlement covers about 83,000 Volkswagen, Audi, and Porsche vehicles. About 20,000 vehicles would be eligible for buy-backs, and Volkswagen has said it could bring 63,000 vehicles into compliance.
Volkswagen will also pay $225 million to an environmental trust created as part of the earlier settlement. In October, Volkswagen agreed to contribute $2.7 billion to the trust. About $41 million will go to the California Air Resource Board (CARB), according to the board.
Lastly, Volkswagen will provide $25 million to CARB by July 1. The money will be used to expand initiatives such as replace-and-upgrade programs for heavy polluting vehicles in disadvantaged communities and the Clean Vehicle Rebate Project. The latter provides rebates and financial assistance for purchasing ZEVs.
Vehicles covered by the 3.0L settlement include 2009 to 2016 model-year Touareg, 2009- to 2015-MY Audi Q7 and 2013- to 2016-MY Porsche Cayenne Diesel. Other models include 2014-MY, 2015-MY, and 2016-MY Audi models, including the A6, A7, A8, A8L, and Q5.
"This settlement highlights the fact that cheating to get a car certified has consequences for air quality and the public's health — and that cheaters will be caught and held accountable," said Richard Corey, CARB's executive officer. "Because California is able to enforce its vehicle regulations, CARB was instrumental in uncovering the cheating in the 3-liter, and before that, in the 2-liter diesel engines. The mitigation in this settlement will now help California address its serious air quality and climate challenges with a focus on putting the very cleanest vehicles in disadvantaged communities where they are needed most."
U.S. district court Judge Charles R. Breyer must still approve the 3.0L settlement.
Originally posted on F&I and Showroom
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →