Volkswagen agrees with a emissions settlement worth $232 million

Volkswagen has agreed to a settlement worth as much as $232 million (C$ 290.5) with owners of vehicles in Canada impacted by its diesel emissions-cheating scandal, the automaker stated on Friday.

The agreement offers cash payments to owners of about 20,000 3.0-liter Volkswagen, Audi and Porsche diesel automobiles in Canada and undergoes court approval. The German automaker likewise accepted to pay a $2.5 million Canadian dollar civil penalty.

“This is an important turning point towards making things right for all our clients with affected diesel vehicles in Canada,” Daniel Weissland, president and CEO of Volkswagen Group Canada, stated.

In 2017, in a similar settlement in the United States, the automaker agreed to invest at least $1.22 billion to repair or buy back almost 80,000 vehicles with 3.0-liter engines. It likewise accepted to pay owners of cars who got repairs for excess emissions between $8,500 and $17,000.

Overall, the German automaker has now agreed to invest over $25 billion in North American to deal with claims from owners, environmental regulators, U.S. states and dealerships and to make buyback deals. The company stated in September it had set aside $30 billion to resolve the scandal.