WOLFSBURG (dpa-AFX) - Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE) has reached an agreement with U.S. environmental regulators to fix or buy back around 80,000 Audi, VW and Porsche vehicles with tainted 3-liter diesel engines, nearing a resolution on a key aspect of the emissions-cheating scandal, Bloomberg reported citing people familiar with the matter.
Under a deal with the Environmental Protection Agency and California's Air Resources Board, Volkswagen would get the go-ahead to fix some 60,000 vehicles and offer to repurchase about 19,000 older models that would be too complex to repair. The recall plans involve a simple software update, and avoiding a full buyback of all the cars would save the company about $4 billion, the report said.
While Volkswagen has agreed to pay an industry-record $16.5 billion to resolve issues involving about half a million 2-liter diesel cars, it has struggled to reach an agreement over the larger engines.
Both the steering group for the car owners and the Federal Trade Commission are demanding that Volkswagen offer to buy back all of the tainted vehicles, which the carmaker is seeking to avoid.
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