German auto manufacturer Volkswagen A.G agreed to compensate owners of about 480,000 vehicles through a blend of buy backs, cash compensation or repairs in light of the diesel emissions cheating crisis.
According to the judge overseeing proceedings, the company’s proposal would include making an undisclosed payment to a fund for environmental remediation efforts related to the vehicles, which are equipped with devices that allowed them to emit nitrogen oxides in excess of U.S. vehicle standards. Other funds would go toward promoting green automotive technology.
The company has already taken a EUR 6.7bn ($7.56bn) charge on its earnings over the crisis and on Friday its board of directors is expected to approve a “double-digit billion euro” charge against its 2015 earnings.
Volkswagen has until 21 June 2016 to disclose specifics of the proposed deal for scrutiny by the court. A hearing on the settlement, which will need the court’s approval, is scheduled for 26 July 2016.