VW deal with U.S. car owners on track, says federal judge

A federal judge said on Tuesday that Volkswagen AG (VW) and attorneys for vehicle owners affected by the German automaker's emissions cheating scandal are on target to meet a June 21 deadline for a final settlement proposal.

In a status hearing here at U.S. District Court, Northern District of California, Judge Charles Breyer said the parties have made substantial progress in reaching a deal for about 482,000 polluting Volkswagens with 2-liter, four-cylinder diesel engines sold in the United States between 2009 and 2015.

Volkswagen used a "defeat device" on these vehicles to fool emissions tests.

Breyer announced a tentative agreement last month between the parties that would allow U.S. consumers to sell their cars back to Volkswagen or get them repaired to meet the legally required emissions levels. It also would include "substantial compensations" for consumers.

However, like in the April 21 hearing, the judge on Tuesday did not provide any additional details about the proposed deal.

The talks underway do not cover some 90,000 additional Volkswagen, Audi and Porsche vehicles with 3-liter, six-cylinder diesel engines.

Hundreds of class-action lawsuits have been filed against Volkswagen following its admission of emissions cheating last September. The German automaker also faces hefty U.S. government penalties for violating pollution standards.

About 11 million vehicles worldwide are involved in the emissions cheating and nearly 600,000 of them are in the United States.

While Breyer has the authority to reject any final deal in his court, the California Air Resources Board rejected earlier this year the recall plan submitted by Volkswagen. Endit