Volkswagen agrees deal to pay $1bn in compensation to car owners

Volkswagen, the US government and private lawyers have reached a deal for the car maker to buy back some of the nearly 600,000 diesel cars that cheat on emissions tests and stump up more than US$1bn to compensate owners.

The "deal in principle" includes a maximum amount of spending, but the final details, such as how much each owner would get, are still being worked out, according to a source briefed on the matter.