Volkswagen will pay $1 billion to buy back or fix 80,000 3.0-liter diesel vehicles

Volkswagen AG agreed on Tuesday to a $1 billion settlement to repurchase or fix roughly 80,000 polluting 3.0-liter diesel VW, Porsche and Audi vehicles.

Volkswagen said it would offer to buy back or fix 20,000 polluting diesel vehicles with 3-liter, six-cylinder diesel engines in the US, fix anotherĀ 63,000 vehicles and pay $225 million toward environmental remediation efforts.

The settlement was announced by U.S. District Judge Charles Breyer during a hearing in San Francisco.

Breyer said owners will see substantial compensation on top of any repairs or a buyback.

Hinrich Woebcken, president and chief executive of Volkswagen Group of America, said in a statement that the deal representsĀ ā€œanother important step forward in our efforts to make things right for our customers.ā€

“We are committed to earning back the trust of all our stakeholders and thank our customers and dealers for their patience as the process moves forward.”

TheĀ settlement pertaining to the 3-liter diesel models is the latest in a stringĀ ofĀ suits related to the carmaker’s diesel emissions cheating scandal.

In June, the company agreed to pay $14.7 billion to address claims over a separate batch of approximately 475,000 2-liter engine vehicles sold since 2008 that were equipped with secret software to make them appear cleaner in testing than they really were.