Vermont Business Magazine Vermont consumers who own or lease certain Volkswagen and Audi 2.0-liter diesel vehicles will receive a cash payment from Volkswagen and will have the option of having their vehicle modified or repurchased by Volkswagen under the terms of a settlement announced by Vermont Attorney General William Sorrell today.
“Volkswagen is being held accountable for its total disregard for our consumers and the environment,” said Attorney General Sorrell. “Today’s agreement is a big step towards making Vermonters whole, but there is still much work to be done. My office will continue to pursue this matter so that Volkswagen is also held responsible for the environmental harm it has caused, as well as to deter future acts of orchestrated consumer deception.”
This agreement begins to address misrepresentations by Volkswagen, Audi, and Porsche that their vehicles are environmentally friendly, or “green,” and compliant with emissions standards—despite their knowledge that that the vehicles emitted harmful nitrogen oxides at rates many times higher than the law permitted. The actions partially resolved today include a consumer class action and a lawsuit filed by the federal government in California. “Through our participation in the multistate coalition of state attorneys general, we ensured that consumers have the option to have their vehicles repurchased by Volkswagen,” said Attorney General Sorrell.
Upon judicial approval of the settlement, Volkswagen will implement a restitution and recall program for approximately 3,000 owners and lessees of 2.0-liter diesel vehicles in Vermont. Eligible vehicles are listed at the end of this press release. Under this program, owners will receive restitution payment of at least $5,100 and a choice between (1) a buy-back of the vehicle (based on pre-scandal National Automobile Dealers Association (“NADA”) value) or (2) modification of their vehicle that will reduce emissions, provided that Volkswagen can develop a modification acceptable to regulators. If an acceptable modification is not approved, VW will buy back the vehicle. For consumers who leased their vehicles, the program provides for a no-penalty lease termination option and payment to lessees.
Today’s agreement also includes the creation of an Environmental Mitigation Fund that requires Volkswagen to pay $2.7 billion into a trust to support environmental programs throughout the country to reduce nitrogen oxide emissions. Under the terms of the mitigation trust, Vermont is eligible to receive $17.8 million. Vermont is in the process of determining whether and how it will be able to utilize those funds.
The full details of the agreement will be available online at www.VWCourtSettlement.com on or about June 28, 2016, or on the Attorney General’s website.
In addition, several states have reached a settlement with Volkswagen requiring payment to those states for violating their laws against unfair or deceptive acts and practices. Vermont has 30 days to decide whether to accept a settlement on the same terms or to pursue its own action against Volkswagen for violations of Vermont’s Consumer Protection Act. Today’s partial settlement also preserves claims under state environmental laws. Vermont intends to seek additional penalties from Volkswagen for its violations of environmental laws and regulations.
Model Year Vehicle Make and Model 2009 VW: Jetta, Jetta Sportwagen 2010 VW: Golf, Jetta, Jetta Sportwagen Audi: A3 2011 VW: Golf, Jetta, Jetta Sportwagen Audi: A3 2012 VW: Golf, Jetta, Jetta Sportwagen, Passat Audi: A3 2013 VW: Beetle, Beetle Convertible, Golf, Jetta, Jetta Sportwagen, Passat Audi: A3 2014 VW: Beetle, Beetle Convertible, Golf, Jetta, Jetta Sportwagen, Passat Audi: A3 2015 VW: Beetle, Beetle Convertible, Golf, Golf Sportwagen, Jetta, Passat Audi: A3
Vermont AG: Jun 28, 2016