(MENAFN- AFP) A US judge on Tuesday granted final approval for a $14.7 billion class action settlement in Volkswagen's diesel emissions cheating scandal.
The settlement offers compensation to nearly a half-million owners of polluting Volkswagen and Audi diesel-powered vehicles in the US which the German automaker has admitted configuring to deceive emissions tests.
"The settlement adequately and fairly compensates class members," US District Judge Charles Breyer wrote in an opinion approving the deal.
Owners of 2.0-liter diesel-powered cars will be eligible for buybacks, penalty-free lease terminations or free modifications to fix the vehicles' emissions. All participants will also receive cash payments.
In addition to $10 billion for compensation to owners, Volkswagen will create a $2.7 billion fund for environmental remediation, and provide $2 billion to promote the use of "zero emissions" vehicles within the United States.
The ruling was a major step in the German automaker's efforts to move past the scandal and revive sagging sales. However, Volkswagen still needs to conclude a separate settlement concerning about 80,000 Volkswagen, Audi and Porsche cars with 3.0 liter engines equipped with the emissions cheat devices.
"Final approval of the 2.0-liter TDI settlement is an important milestone in our journey to making things right in the United States and we appreciate the efforts of all parties involved in this process," Hinrich Woebcken, president and CEO of Volkswagen Group of America, said in a statement.
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