Dieselgate: VW to buy back 5 lakh cars in the US

Volkswagen will offer to buy back almost 5,00,000 diesel cars in the United States of America. These cars used a defeat device - a software that enabled them to pass emission tests in the country.

The company has reached an agreement with the authorities and is expected to buy back close to 5,00,000 vehicles with 2.0-litre diesel engines including the Jetta, Golf and the Audi A3 sold since 2009. This buyback offer does not apply to the 80,000 3.0-litre diesel vehicles also found to be emitting more than the permissible limit.

Volkswagen is reported to have agreed to a compensation fund for owners as well. This fund is expected to represent more than $ 1 billion on top of the cost of buying back the vehicles. Additionally, if the authorities agree, Volkswagen may offer to repair the affected vehicles. The authorities are expected to give owners around two years to decide whether to sell their cars back to Volkswagen or get them repaired.

In September 2015, Volkswagen admitted to having cheated in emission tests for 11 million vehicles worldwide.

Source: Reuters