Volkswagen could spend $2.1 billion to buy back or repair some 105,00 Canadian-market diesel-engined cars that were found to emit more pollutants than advertised, the automaker said December 19.
The proposed “dieselgate” settlement would also see the company pay a $15-million civil administrative monetary penalty; and, separately, the legal fees incurred by the VW owners involved in the case, reports Reuters.
Canadian courts in Ontario and Quebec will hold approval hearings regarding the proposed settlement around the end of March 2017.
Most Canadian VW diesel owners looking to have VW buy back their vehicle would receive between $5,100 and $5,950 in compensation on top of the value of the vehicle; alternatively, the automaker would repair affected owners’ vehicles if preferred.
Only owners of 2.0-litre diesel-engined VW Jetta, Golf, Passat, and Beetle and Audi A3 vehicles are covered in the settlement; cars with 3.0-litre diesel engines are not included.
“Volkswagen’s primary goal has always been to ensure our Canadian customers are treated fairly, and we believe that this proposed resolution achieves this aim,” Reuters quoted Maria Stenstroem, Volkswagen Group Canada president and CEO.
The suit launched by the VW diesel owners alleges they lost a signficant amount of their vehicles’ resale value after the “dieselgate” scandal first came to light in September 2015.
Volkswagen reached a similar deal with U.S. VW diesel owners back in June, setting aside $10 billion to buy back or fix 475,000 vehicles.