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What You Need To Know About Volkswagen's 2.0L TDI Settlement

After ten months of owners being left in the dark and Volkswagen negotiating with the U.S. about a possible settlement over the diesel emission scandal, the light at the end of the tunnel is being shown.
Posted: June 28, 2016 - 3:52PM
Author: Will Maley

This morning, Volkswagen and U.S. officials announced that a final settlement has been reached over the 2.0L TDI engine. The settlement will cost the German automaker $14.7 billion, making it the largest settlement ever paid by an automaker.

“Using the power of the Clean Air Act, we’re getting VW’s vehicles off the road and we’re reducing harmful pollution in our air pollution that never should have been emitted in the first place,” EPA Administrator Gina McCarthy said.

For TDI Owners

Roughly $10 billion of the settlement will go to owners of the 475,000 Volkswagen and Audi vehicles equipped with the 2.0L TDI engine. Here is how the money will be distributed,

  • Owners will receive compensation ranging from $5,000 to $10,000. The exact amount will be determined by various factors such as the age of the vehicle.
  • Owners will have the choice of having Volkswagen buying back their vehicle or having the vehicle repaired once a fix is approved by the EPA and CARB.
  • Those who go for the buyback will receive between $12,500 to $44,000. The amount depends on the vehicle, age, mileage, and a number of other factors.
  • If you have a loan though a third-party, Volkswagen will pay off the loan. The amount could be as much as 130 percent of the buyback value of the vehicle.
  • Those leasing will be able to terminate the lease without any penalties

As part of the settlement, Volkswagen "must achieve an overall recall rate of at least 85% of affected 2.0 liter vehicles under these programs or pay additional sums into the mitigation trust fund," according to a statement from the EPA.

If you have any questions or are wondering if your Volkswagen or Audi vehicle is covered in this settlement, you can visit

What about the remainder of the settlement?

  • $2.7 billion will go towards a trust that will fund various environmental programs across the U.S. to reduce nitrogen oxide (NOx) emissions.
  • The remaining $2 billion will be used to promote zero emission vehicles.

Now this settlement needs to be approved by U.S. District Judge Charles Breyer. We'll keep you posted on this.

What isn't covered in this settlement?

Those who have the 3.0L TDI V6 are left in the cold for the time being. Volkswagen and the U.S. still need to work out a possible settlement on this. There is also the question of various penalties being given to the company in the near future.

Pic Credit: Volkswagen