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VW Reaches Deal for Emissions-Cheating Audi, Porsche Models

  • Carmaker will fix or buy back 83,000 vehicles from U.S. owners
  • Agreement also covers claims against VW supplier Bosch
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Volkswagen Reaches New Deal on Emissions

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Volkswagen AG took an important step in digging out from its emissions-cheating scandal by reaching a $1 billion agreement to settle lawsuits over tainted 3.0-liter diesel engines.

The preliminary accord calls for the German automaker to fix or buy back 83,000 Audi, VW and Porsche vehicles equipped with a so-called defeat device. The deal includes pledges by Volkswagen to spend $225 million to mitigate environmental damage the autos caused and $25 million to support the use of zero-emission models, the California Air Resources Board and the U.S. Department of Justice said in statements following a U.S. federal court hearing in San Francisco.