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Volkswagen reaches deal in principle with U.S. over Dieselgate

Staff writer |
Volkswagen and U.S. authorities have reached a deal in principle to address the emissions scandal of diesel cars sold in the United States.

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U.S. District Judge Charles Breyer, who oversees the class-action lawsuits brought by American car owners against Volkswagen, said in a court hearing that the settlement includes buybacks of some diesel cars and compensation for U.S. drivers.

Earlier this year, the U.S. Department of Justice filed a civil lawsuit against the German auto maker for installing illegal devices to impair emission control system in nearly 600,000 diesel cars, which caused emissions to exceed U.S. standards.

"This agreement in principle addresses one important aspect of the department's pending case against VW, namely what to do about the 2-liter diesel cars on the road and the environmental consequences resulting from their excess emissions," Justice Department spokesman Wyn Hornbuckle said in a statement.

"The department's other investigations into VW's conduct remain active and ongoing."

Volkswagen confirmed that the company has reached an agreement in principle with the Department of Justice, the Environment Protection Agency, and the California Air Resources Board.

"This agreement in principle will be incorporated into binding consent decrees by the Department of Justice and the FTC (Federal Trade Commission) in the coming weeks," Volkswagen said in a statement.

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