Volkswagen Receives Preliminary Approval For 2.0-liter Diesel Settlement

Volkswagen is one step closer to reaching a settlement in the U.S. regarding its illegal 2.0-liter diesel engine.

Yesterday, U.S. District Court Judge Charles Breyer of California granted the German conglomerate preliminary approval for its 2.0-liter TDI settlement program. This mean that the 475,000 U.S. owners of 2.0-liter diesel models will receive notification about the options they have in moving beyond the ordeal.

Under the settlement, affected owners will either be able to sell back their vehicle to Volkswagen or terminate their lease without any penalties or alternatively, can keep their vehicle and receive the necessary modifications free of charge. Whichever is chosen, owners will also receive between $5,100 and $10,000 in cash.

The latter option isn’t currently valid however as the company has yet to receive approval from the Environmental Protection Agency or California Air Resources Board for its proposed 2.0-liter diesel fix. If approval doesn’t come, VW will be forced to buy back all the affected vehicles.

In a statement, the firm said that it is also pushing forward in its attempt to have modification plans for the 3.0-liter TDI V6 to receive approval.