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Volkswagen Reaches a Deal With the Justice Department in Its Emissions Scandal

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author photo by Doug DeMuro April 2016

Volkswagen has officially reached a deal with the U.S. Department of Justice on a plan for how the brand will handle owners who are affected by its diesel emissions scandal. While exact terms for the plan have not yet been announced, it appears that the automaker will offer customers a few different options.

This is the latest news from several sources, which note that Volkswagen and the Justice Department have reached the agreement in principle. Although nothing has yet been made official, it appears as if VW will offer to buy back customer vehicles, cancel leases or modify vehicles to meet emissions standards, depending on what each owner wants. The deal is also said to include substantial compensation for affected owners.

While this move will undoubtedly be expensive for Volkswagen, the auto manufacturer still faces greater costs on the horizon. They may be charged with penalties and fines stemming from the emissions scandal wherein the brand's vehicles were found to be using "defeat devices" during emissions testing. The devices allowed certain VW models to greatly lower their emissions during the testing process while polluting far more during normal on-road driving.

The tentative deal was reached after considerable negotiation took place between VW and various U.S. government organizations, along with the California Air Resources Board -- and we expect the official terms to be announced in the next few weeks.

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Volkswagen Reaches a Deal With the Justice Department in Its Emissions Scandal - Autotrader