Volkswagen will make cash payments totaling up to $232 million to about 20,000 owners of its diesel vehicles in Canada, the German automaker and a group representing consumers in a class-action said. Volkswagen also agreed to pay a $2.5 million penalty.
If approved by a court, the proposed nationwide settlement covers roughly 15,000 owners and lessees of model year 2013-2016 Volkswagen, Audi, and Porsche 3.0L diesel vehicles recalled for emissions repair.
Payments will also be sent to owners and lesses of affected model year 2009-2012 vehicles who will also be offered options including buyback, trade-in, early lease termination or a possible recall fix to reduce emissions.
"This is an important milestone towards making things right for all of our customers with affected diesel vehicles in Canada," said Daniel Weissland, president and CEO of Volkswagen Group Canada. "We thank our 3.0L customers for their continued patience as a settlement for their vehicles moves towards approval."
The scandal that erupted in the U.S. in 2015 eventually had VW admitting that it rigged more than 11 million vehicles around the globe with software to cheat emissions tests.
The latest accord follows the settlement last year involving Volkswagen and Audi vehicles with 2.0-litre diesel engines sold in Canada. In his statement, Weissland referred to the company's 2.0L settlement program, saying VW is investing "substantial resources to ensure that the process runs as smoothly as possible."