“Substantial” progress made in VW settlement talks

U.S. District Court Judge Charles Breyer said Tuesday that Volkswagen and the U.S. government have made “substantial progress” toward reaching a settlement deal to resolve the outstanding issues surrounding Volkswagen’s diesel emissions cheating scandal.

The Associated Press is reporting that Judge Breyer expects VW to meet the court-ordered June deadline.

In April, the parties reached an agreement in principle on a plan that will see Volkswagen pay out a total of $1 billion in compensation and agree to fix vehicles for owners who would rather not participate in a buyback program.

Volkswagen’s plan for addressing non-compliant vehicles belonging to those owners who do not want to participate in a buyback program has yet to be articulated to the public.

The agreement reached last month covered only the roughly 480,000 2.0L, four-cylinder TDI engines sold in Volkswagen and Audi compact and midsize cars. 3.0L V6 models sold under Volkswagen, Audi and Porsche (representing an additional 80,000 units, give or take) are one subject of the ongoing negotiations.

Volkswagen has set aside billions of dollars to be spent rectifying the situation for owners. The total cost of fines and other penalties and fees has yet to be determined.

VW issued a brief statement this morning confirming the ongoing talks and reassuring customers that no immediate action on their part is required.