Volkswagen Canada to spend up to 2.1B on emissions scandal compensation

VW may be closer to settling its problems in the U.S., but there's still the rest of the world to deal with.

The bureau's investigation found that Volkswagen Canada and Audi Canada misled consumers by claiming that vehicles sold or leased in Canada had diesel engines with reduced emissions that were cleaner than an equivalent gasoline engine sold in Canada. There's some progress on that front, too, as Volkswagen agreed to a settlement with Canadian diesel owners. Part of the deal specifies that Volkswagen Canada has also agreed to pay C$15 million (about AU$15.4 million) in administrative monetary penalties.

Approximately 105,000 vehicles will be included in this settlement.

In June, the German carmaker agreed to spend up to $10.03 billion and offered to buy back 475,000 2.0 litre vehicles and offer compensation of $5,100 to $10,000 per owner. It's unclear what the fix entails at this time.

Volkswagen has agreed to a buy-back program in Canada worth some US$1.6 billion in the aftermath of the dieselgate emissions scandal.

A hearing was to be held Monday in U.S. District Court, San Francisco dealing with the settlement.

It's more money out of VW's pocket, but it's at least one more dieselgate settlement down. Models with the affected 2.0 liter diesel engines include the Jetta, A3 and Cayenne. Given the sheer size disparity between the number of diesels in each country, VW is expected to spend more than five times the money in the United States than it will in Canada. In total, the company has now agreed to spend to date more than $18 billion to address diesel emissions issues in North America.

Meanwhile, Volkswagen is still on the hook for its 3.0-liter diesels in the USA, which contain a different kind of software discrepancy. The automaker still faces more costs to address larger vehicles and USA fines.

Volkswagen has been asked to present their final agreement resolving the matter for 3.0-liter vehicles by 19th December (i.e today).

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