Volkswagen Group of America reaches proposed agreement with private plaintiffs on fuel economy ratings

Volkswagen Group of America, Inc. (VWGoA) announced today that it has reached an agreement with private plaintiffs to resolve outstanding claims concerning the fuel economy ratings of certain Volkswagen Group Model Year 2013-2017 gasoline vehicles sold or leased in the United States.

The fuel economy information for approximately 98,000 affected gasoline vehicles, or approximately 3.5 percent of Model Year 2013-2017 gasoline vehicles sold or leased in the United States, will be restated to reflect a discrepancy of one mile per gallon, when rounded according to the U.S.-specific “Monroney” label requirements.

Under the proposed settlement, VWGoA has agreed, among other terms, to reimburse eligible customers for the fuel economy restatement. Eligible customers will receive payments ranging from $5.40 to $24.30 for each month the vehicle is owned or leased. The total value of the settlement, which is subject to Court approval, is approximately $96.5 million.

VWGoA will also adjust its Greenhouse Gas (GHG) credits to account for any excess credits associated with the fuel economy discrepancy. The adjustment is subject to final approval from the U.S. Environmental Protection Agency.

“Volkswagen is committed to providing customers with transparent fuel economy data for our vehicles, in line with U.S. labeling requirements,” said Pietro Zollino, Executive Vice President, Communications for VWGoA.

The settlement removes the uncertainty of protracted litigation and does not include any admission of liability or wrongdoing by Volkswagen.

Potential claimants will have to submit a claim to receive compensation but do not need to take any action at this time. Individual class members will receive information about their rights and options (including the option to “opt out” of the settlement agreement) if the Court grants preliminary approval of the proposed agreement.