SACRAMENTO – (INT) - Volkswagen will spend over one billion dollars in California to address illegal emissions caused by cheating devices on its 2.0-liter diesel vehicles.

The illegal "defeat devices" cheated emissions tests in 71,000 2.0-liter diesel cars sold in California between 2009-2015.

The settlement requires Volkswagen to offer consumers a buyback and lease termination for all 500,000 model year 2009-2015 2.0-liter diesel vehicles sold or leased nationwide, and spend up to $10 billion to compensate consumers under the program.

In addition to the buyback option, Volkswagen may also propose an emissions modification plan to U.S. EPA and CARB, and if approved, VW will offer owners and lessees the option of having their vehicles modified to substantially reduce emissions in lieu of having the car bought back by VW.

The settlement does not resolve pending claims for civil penalties or any claims concerning 3.0-liter diesel vehicles, and does not address any potential criminal liability.

Story Date: July 4, 2016