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RIAG: Volkswagen Agrees to Buy Back Emission Fraud Cars, Billions in Restitution

RI Attorney General Peter F. Neronha.

RIAGIf you’re driving one of the 3,292 Volkswagen vehicles equipped with illegal and undisclosed emission masking software in Rhode Island, Attorney General Peter Kilmartin has good news for you: the company will pay $570 million in restitution to the state, and buy back or modify your car.

This agreement is part of a series of state and federal settlements that will provide cash payments to affected consumers, require Volkswagen to buy back or modify certain VW and Audi 2.0-liter diesel vehicles, and prohibits Volkswagen from engaging in future unfair or deceptive acts and practices in connection with its dealings with consumers and regulators.

“Volkswagen deceived its customers along with state and federal regulators when the company knowingly sold vehicles that failed to meet emissions standards as marketed, and further, tried to cover up their actions,” said Attorney General Kilmartin.  “This settlement, one of the largest in recent history, provides real relief for consumers that consciously purchased certain models for their smaller environmental impact than other vehicles and holds the company responsible for their reckless and negligent actions.”

Under the settlements, Volkswagen is required to implement a restitution and recall program for more than 475,000 owners and lessees of 2.0-liter diesel vehicles, of the model year 2009 through 2015 listed in the chart below at a maximum cost of just over $10 billion. This includes 3,292vehicles in Rhode Island.

Once the consumer program is approved by the court, affected Volkswagen owners will receive restitution payment of at least $5,100 up to $10,000, and a choice between:

o   A buy back of the vehicle (based on pre-scandal NADA value); or

o   A modification to reduce NOx emissions provided that Volkswagen can develop a modification acceptable to regulators. Owners will still be eligible to choose a buyback in the event regulators do not approve a fix. Owners who choose the modification option would also receive an Extended Emission Warranty; and a Lemon Law-type remedy to protect against the possibility that the modification causes subsequent problems.

The consumer program also provides benefits and restitution for lessees (restitution and a no-penalty lease termination option) and sellers after September 18, 2015 when the emissions-cheating scandal was disclosed (50 percent of the restitution available to owners). Additional components of today’s settlements include:

o   Environmental Mitigation Fund: Volkswagen will pay $2.7 billion into a trust to support environmental programs throughout the country to reduce emissions of NOx. This fund, also subject to court approval, is intended to mitigate the total, lifetime excess NOx emissions from the 2.0-liter diesel vehicles identified below. Under the terms of the mitigation trust, Rhode Island is eligible to receive approximately $13.5 million to fund mitigation projects.

o   Additional Payment to the States: In addition to consumer restitution, Volkswagen will pay to the states more than $1,000 per car for repeated violations of state consumer protection laws, amounting to $570 million nationwide.  This amount includes approximately $3.2 million paid for affected vehicles Volkswagen sold and leased in Rhode Island.

o   Zero Emission Vehicles: Volkswagen has committed to investing $2 billion over the next 10 years for the development of non-polluting cars, or Zero Emission Vehicles (ZEV), and supporting infrastructure.

o   Preservation of Environmental Claims: Today’s settlement by state attorneys general preserves all claims under state environmental laws, and Rhode Island maintains the right to seek additional penalties from Volkswagen for its violations of environmental and emissions laws and regulations.

Volkswagen will also pay $20 million to the states for their costs in investigating this matter and to establish a fund that state attorneys general can utilize for future training and initiatives, including investigations concerning emissions violations, automobile compliance, and consumer protection.

The full details of the agreement will be available online.  Consumers can file a claim via the website.


Rob Borkowski
Author: Rob Borkowski

Rob has worked as reporter and editor for several publications, including The Kent County Daily Times and Coventry Courier, before working for Gatehouse in MA then moving home with Patch Media. Now he's publisher and editor of Contact him at [email protected] with tips, press releases, advertising inquiries, and concerns.

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