Volkswagen in $10bn deal over emissions crisis

Volkswagen agreed to fix or buy back about 500,000 tainted cars in the US, taking a significant step forward in its effort to emerge from the emissions-cheating scandal.

The German car maker’s shares rose 2% late yesterday, marking a 15% gain for the battered stock since the start of the month.

Following months of acrimonious wrangling with US authorities, Volkswagen was commended at a hearing in San Francisco for its co-operation and given until June 21 to fine tune the agreement.