Second FTC settlement with Volkswagen challenges green claims of 3.0-liter diesel engine

Sometimes a sequel can be just as compelling as the original, and we think the just-announced settlement, which makes owners of 3.0-liter VW, Audi and Porsche diesel cars eligible for more than $1 billion in compensation, fits that description.

In June 2016, the U.S. Federal Trade Commission (FTC) reached a record $10 billion settlement with Volkswagen, claiming that the company viewed its 2.0-liter “clean diesel” vehicles as an attractive option for environmentally friendly consumers. But according to the indictment, Volkswagen secretly installed a “defeat device” to falsify emissions test scores.

The next chapter in the Volkswagen story accuses the company of similar behavior with its 3.0-liter diesel engine. The newly proposed settlement affects more than 77,000 vehicles that were not included in the original announcement. They are divided into two different “generations” based on make, model and year, and it’s important for car owners to understand how their car is classified.

Owners or lessees of first-generation cars will have a choice: VW will buy back the car (or terminate the lease) and pay the owner or lessee an additional fee or If it gets approval from regulators, Volkswagen will modify the cars’ emissions systems and pay them to do so. The modification will improve the car’s emissions but will not bring it into full compliance with the original certification standards.

For the second-generation car, Volkswagen expects to receive regulatory approval for certified emissions fixes that will bring the car into full compliance with the original certification standards. If there is a certified repair, Volkswagen will perform the repairs and pay the owner or lessee. (VW will buy back or terminate leases on second-generation cars only if certified emissions fixes are not possible.)

If you own one of the covered cars, we’ve published a fact sheet and detailed table with estimated payment ranges for various makes, models and trims. Owners will soon be able to visit VWCourtSettlement.com to see if their car qualifies. (We also published an article on the FTC’s Consumer Blog sharing important information about the program.)

The 3.0-liter settlement is big news for consumers, but it also speaks volumes about the company’s obligation to fulfill its promises to customers, and the serious consequences that can arise if it doesn’t.