$15bn Volkswagen settlement clears first hurdle

A $15bn (€13.6bn) settlement over carmaker Volkswagen’s emissions cheating scandal has cleared a key hurdle, with a federal judge giving preliminary approval to a deal that includes an option for owners to have the firm buy back their vehicles.

Lawyers for Volkswagen owners sought approval from US District Court Judge Charles Breyer, who is overseeing consumer lawsuits and government claims that the German company’s diesel engines cheated on US emissions tests.

The terms call for the firm to spend up to €10bn buying back or repairing about 475,000 Volkswagens and Audi vehicles with 2-litre diesel engines and paying their owners an a extra $5,100 to $10,000 each. Details about the repairs have not been finalised.