The company will recall more than 83,000 affected models from 2012 to 2016.
Following reports that Volkswagen Group would place $200 million into a fund for nearly 80,000 vehicles with affected 3.0-liter TDI engines, an official statement from the EPA confirms that a partial settlement will force VW to pay $225 million and agree to recall and/or buy back as many as 83,000 affected models.
The recall and buyback affects VW, Audi, and Porsche vehicles – mostly SUVs – produced between 2009 and 2016. Separated into two "generations," generation one encompasses 2009 to 2012 VW Toureg and Audi Q7 diesel models.
Because the company can not modify those affected generation one vehicles to meet EPA-certified exhaust emissions standards, VW is required to buy back the cars and offer lessees a lease cancellation at no cost. A total of 63,000 cars are part of the buyback.
Generation two vehicles, meanwhile, will be recalled and fixed to meet certified exhaust emissions standards. Those generation two vehicles include the 2013 through 2016 VW Toureg diesels, 2013 through 2015 Audi Q7 diesels, 2013 through 2016 Porsche Cayenne diesels, and 2014 through 2016 Audi A6 Quattro, A7 Quattro, A8, A8L, and Q5 diesel models.
The new $225 million fine is just a small add on to the $2.7 billion the company is already required to pay into a trust to fund projects that aim to reduce NOx emissions, and another $2 billion to improve infrastructure and development of zero emissions vehicles over the next 10 years.
Within that ten-year period, the company has agreed to add at least three additional electric vehicles to its lineup by 2020, including an SUV. VW has also agreed to pay California’s state air board $25 million in fines.
"The agreement announced by the Court today between Volkswagen and U.S. environmental regulators is another important step forward in our efforts to make things right for our customers, and we support the efforts of the Court to bring about a fair and reasonable resolution of remaining 3.0L TDI V6 claims as quickly as possible," said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc.