An Ontario Superior Court judge approved a settlement worth up to $229 million with about 20,000 owners of 3.0-liter VW, Audi and Porsche diesel vehicles in Canada affected by Volkswagen AG’s diesel emissions violations.
Volkswagen and Canadian class counsel, in consultation with the Commissioner of Competition, initially reached the agreement Jan. 12. Justice Paul Perell released details of his approval Thursday.
The settlement provides for cash payments to owners and lessees. The German automaker also agreed to pay a nearly $2 million civil penalty.
Cash payments will now be made to roughly 15,000 owners and lessees of model year 2013-16 Volkswagen, Audi and Porsche 3.0-liter diesel vehicles who received the recall for an emissions repair as well as an extended emissions warranty.
Payments will also be made to about 5,000 owners and lessees of affected model year 2009-12 vehicles. Additional options for owners include buyback, trade-in, early lease termination or a modification to reduce emissions.
Cash payments range from about $1,582 to nearly $10,000, depending on a variety of factors, including the vehicle’s make and age and whether it was owned or leased.
Perell said that while the agreement “is not a perfect settlement” it was in the best interest of all involved to have it approved.
“A protracted duration of litigation…would at best produce a marginally better settlement,” Perell wrote. “I am satisfied that the 3.0L Settlement Agreement should be approved.”
The automaker already settled with Canadian owners of Volkswagen and Audi vehicles with 2.0-liter diesel engines. In 2016, Volkswagen agreed to spend up to $2.06 billion to buy back or fix 105,000 polluting 2.0-liter diesels and compensate owners in Canada.