VW to Recall 83,000 Vehicles in Its Emission Scandal

Automotive - Pavan Pandey - Dec 22,2016

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vw to recall 83000 vehicles in its emission scandal

German automotive manufacturing company, Volkswagen Group (VW AG) has agreed to recall its 83,000 models of 3.0-litre diesel engine vehicles.

In order to curtail its US emission scandal, the Volkswagen group has decided on a $1 billion settlement to fix or buy back 80,000 polluting diesel car models sold in the US.

The United States District Judge Charles Breyer declared the settlement after a hearing in San Francisco. The agreement covered VW, Porsche and Audi vehicles with 3-litre engines, meaning automotive manufacturer VW group will now have to employ as much as $17.5 billion in the US to settle claims from federal and state regulators and owners over diesel vehicles.

Regulators, however, said that the settlement doesn’t address potential criminal obligations. It also doesn’t fix pending claims from the Federal Trade Commission, consumers and individual owners.

The president and Chief Executive Officer of Volkswagen Group in the USA, stated that the deal is another essential step forward in the company’s efforts to make things right for its customers, calling it reasonable and an impartial resolution for emission cheating settlement.

As part of the settlement, Volkswagen will also have to spend $225 million to fund projects dedicated to decreasing nitrogen oxide emissions. The company will specifically recall 63,000 the model year 2013 - 2016 vehicles and has the choice of modifying, terminating the leases or buying back of the 20,000 the model year 2009 – 2012 vehicles. The emissions change must be approved by federal and state regulators.

In the month of June, Volkswagen AG decided to pay up to $14.7 billion to resolve emissions-cheating claims affecting total 475,000 cars sold since the year 2008 and containing 2-liter engines, with some amount of that money going toward environmental remediation and investment in zero-emissions technology.