VW’s $290M settlement with owners of 3-litre diesels gets court OK


An Ontario Superior Court judge has approved a settlement worth up to $290.5 million with about 20,000 owners of 3.0-litre VW, Audi and Porsche diesel vehicles in Canada affected by Volkswagen AG’s diesel emissions-cheating scandal.

Volkswagen and Canadian class counsel, in consultation with the Commissioner of Competition, initially reached the agreement Jan. 12. Justice Paul Perell released details of his approval Thursday.

The settlement provides for cash payments to owners and lessees. The German automaker also agreed to pay a $2.5 million Canadian dollar civil penalty.

Cash payments will now be made to roughly 15,000 owners and lessees of model year 2013-2016 Volkswagen, Audi and Porsche 3.0-litre diesel vehicles who received the recall for an emissions repair as well as an extended emissions warranty.

Payments will also be made to about 5,000 owners and lessees of affected model year 2009-2012 vehicles. Additional options include buyback, trade-in, early lease termination or a modification to reduce emissions.

Cash payments range from $2,000 to $12,600 depending on a variety of factors, including the vehicle’s make and age and whether it was owned or leased.

Perell said what while the agreement “is not a perfect settlement” it was in the best interest of all involved to have it approved.

“A protracted duration of litigation…would at best produce a marginally better settlement,” Perell wrote. “I am satisfied that the 3.0L Settlement Agreement should be approved.”

The automaker already settled with Canadian owners of Volkswagen and Audi vehicles with 2.0-litre diesel engines. In 2016, Volkswagen agreed to spend up to $2.6 billion Canadian dollars to buy back or fix 105,000 polluting 2.0-litre diesels and compensate owners in Canada.

Written by Auto News

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