Herndon, VA – March 30, 2017 – Volkswagen AG and Volkswagen Group of America, Inc. (together, Volkswagen) announced today that they have reached an agreement with the attorneys general of 10 U.S. states to resolve environmental claims related to the diesel matter in the United States, as well as certain consumer claims that were not included in Volkswagen’s prior multi-state agreement.
Volkswagen has agreed to pay approximately $157.45 million, to be allocated among the participating states of Connecticut, Delaware, Maine, Massachusetts, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington.
The agreement avoids further prolonged and costly litigation as Volkswagen continues to work to earn back the trust of its customers, regulators and the public.
The 10 states participating in the agreement have adopted California’s new-vehicle emissions standards, pursuant to Section 177 of the Clean Air Act (CAA). Under U.S. federal law, California has the unique authority as a U.S. state to seek a waiver from the U.S. Government to set its own emissions standards, which must meet or exceed federal standards. Other states, which are not permitted to develop their own emissions standards, have the option to adopt California’s more stringent standards. States that take such action are known as “Section 177” states. States that do not adopt California standards, or “Non-Section 177” states, are subject to the federal emissions standards set by the CAA and enforced by the federal government.
In June of 2016, Volkswagen reached a $603 million agreement with 44 U.S. states, the District of Columbia and Puerto Rico to resolve state consumer protection claims. That consumer settlement did not include claims for injunctive relief or restitution related to 3.0L TDI V6 vehicles, which are included in the settlement announced today.
In January, Volkswagen reached an agreement with the U.S. government to pay a combined penalty of $1.45 billion to resolve federal environmental claims under the CAA and customs-related civil claims. As part of its civil settlement agreements, Volkswagen is also establishing a $2.92 billion environmental trust to remediate the total, lifetime excess nitrogen oxide emissions from affected 2.0L TDI and 3.0L TDI V6 vehicles in the United States and invest $2.0 billion over 10 years in zero emissions vehicle (ZEV) infrastructure, access and awareness initiatives.
By its terms, the agreement announced today is not intended to apply to or affect Volkswagen’s obligations under the laws or regulations of any jurisdiction outside the United States. The agreement was executed by Volkswagen AG, Volkswagen Group of America, Inc., Audi of America, LLC, Volkswagen Group of America Chattanooga Operations, LLC and Audi AG, as well as Dr. Ing. h.c. F. Porsche AG and Porsche Cars North America, Inc.