Volkswagen has announced a deal for hundreds of thousands of American VW diesel owners hoping to put Dieselgate to rest.

In front of Judge Charles Breyer in San Francisco, VW is said to have a plan to buy back TDIs and offer a compensation plan, according to an attorney who is defending customers who bought some of the affected diesel-engined vehicles.

The Law Office of Thomas L. Young sent us the following statement:

 “This morning attorneys for the United States, plaintiff lawyers representing consumers, and the Defendant Volkswagen announced a program where VW will buy back affected vehicles as well as compensate owners for their trouble. The deal will allow the German manufacturer to bring some certainty back to its operations, while also providing relief to disgruntled drivers.

 Judge Charles Breyer, who oversees the massive multi-district litigation from his San Francisco courtroom, had strongly urged the company to come to today’s hearing with a plan in place. He intimated that failure on Volkswagen’s part to do so could lead to an expedited trial this summer over the issues. Judge Breyer has called the payment to consumers “substantial compensation.” The exact terms and payment amounts remain confidential.

 Today’s announcement does not include damages that may be levied against VW by the many state and local governments that have sued the automaker. Those governmental entities are seeking additional billions from Volkswagen. In addition, Volkswagen dealers have not yet resolved their issues with the company.”

According to Automotive News, the agreement only affects roughly 482,000 cars with the 2.0-liter TDI in the U.S., not around 80,000 3.0-liter V6 TDI models from VW, Audi and Porsche, a resolution for which, has yet to be agreed upon.

Update – VW issued the following statement saying it has reached an agreement in principle with the US authorities

“In connection with the diesel issue, Volkswagen AG confirms that an agreement in principle with the Department of Justice (Environmental Division), the Environment Protection Agency (EPA), and the California Air Resources Board (CARB), with the full involvement of the Federal Trade Commission (FTC), has been reached in the United States. This agreement in principle will be incorporated into binding consent decrees by the Department of Justice and the FTC in the coming weeks.

Furthermore, Volkswagen has reached an agreement on the basic features of a settlement with the class action plaintiffs in the lawsuit in San Francisco. This agreement will be incorporated into a comprehensive settlement in the coming weeks.

The judge presiding over today’s court hearing in San Francisco, Charles R. Breyer, expressly welcomed this development.

The arrangements in the making in the United States will have no legal bearing on proceedings outside of the United States.

Ongoing investigations by the Department of Justice, Criminal Division, and the State Attorneys General are not prejudiced by these agreements in principle.”

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