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A US judge on Thursday gave German automaker Volkswagen until October 24 to come up with a fix for three-liter diesel engines rigged to cheat emissions tests, or face trial. Meanwhile, Volkswagen indicated it has reached a settlement deal in principle with US dealerships over diesel-cheat losses. During a court hearing in San Francisco, US District Court Judge Charles Breyer told attorneys that lack of an agreement on the issue would lead to a trial starting by the middle of next year.
Volkswagen AG has agreed to spend more than $1.2 billion to compensate its 650 U.S. dealers for their losses from the German automaker's diesel emissions scandal, two sources briefed on the matter said on Thursday. The company and a lawyer for the VW brand dealers announced a tentative settlement at a court hearing in San Francisco on Thursday, but declined to disclose the amount. The settlement, which followed talks that began in May, came as a judge ordered VW to move quickly to decide whether to fix or buy back 85,000 luxury vehicles with polluting engines.