Clean Diesel – Diesel Technology

Volkswagen May Establish Diesel Remediation Funds

March 17, 2016

Volkswagen is reportedly in negotiations to establish two funds to provide payments to regulars following the diesel emissions scandal. The funds would be administered by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board to promote clean transportation.

Talks have been going on for months, though they have only made progress in the past few weeks, reports Bloomberg. The parties are attempting to reach a solution to the situation by the March 24 court deadline that was set by U.S. District Court Judge Charles R. Breyer last month.

The remediation funds would help settle the civil lawsuit filed by the U.S. Department of Justice (DOJ) in January, but wouldn't completely resolve the situation. Volkswagen will also be expected to find a way to reduce emissions from affected vehicles that are still on the road. The government may require Volkswagen to extend warranties and replace catalytic converters or other parts every 25,000 miles. Officials have also said that they're hoping for a settlement that gives customers the option to sell their cars back to Volkswagen.

The DOJ is still conducting a separate investigation to determine whether Volkswagen or its executives violated any criminal laws.

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