Volkswagen to pay at least $1.2 billion for bigger diesels

Markets Associated Press

  • FILE - In this Nov. 18, 2016 file photo the Volkswagen logo is photographed through rain drops on a window in Frankfurt, Germany. Volkswagen has agreed to pay at least US$ 1.2 billion in buybacks and compensation to settle claims from U.S. owners of cars with larger diesel engines that the company rigged to cheat on emissions tests. The proposed settlement filed late Tuesday, Jan. 31, 2017 in U.S. District Court in San Francisco covers owners of some 75,000 Audi, Volkswagen and Porsche cars with 3.0-liter diesel engines. (AP Photo/Michael Probst)

    FILE - In this Nov. 18, 2016 file photo the Volkswagen logo is photographed through rain drops on a window in Frankfurt, Germany. Volkswagen has agreed to pay at least US$ 1.2 billion in buybacks and compensation to settle claims from U.S. owners of ... cars with larger diesel engines that the company rigged to cheat on emissions tests. The proposed settlement filed late Tuesday, Jan. 31, 2017 in U.S. District Court in San Francisco covers owners of some 75,000 Audi, Volkswagen and Porsche cars with 3.0-liter diesel engines. (AP Photo/Michael Probst) (The Associated Press)

  • FILE - In this Oct. 13, 2015, file photo, a Volkswagen Touareg diesel is tested in the Environmental Protection Agency's cold temperature test facility in Ann Arbor, Mich. Volkswagen has agreed to pay at least US$ 1.2 billion in buybacks and compensation to settle claims from U.S. owners of cars with larger diesel engines that the company rigged to cheat on emissions tests. The proposed settlement filed late Tuesday, Jan. 31, 2017 in U.S. District Court in San Francisco covers owners of some 75,000 Audi, Volkswagen and Porsche cars with 3.0-liter diesel engines.  (AP Photo/Carlos Osorio, File)

    FILE - In this Oct. 13, 2015, file photo, a Volkswagen Touareg diesel is tested in the Environmental Protection Agency's cold temperature test facility in Ann Arbor, Mich. Volkswagen has agreed to pay at least US$ 1.2 billion in buybacks and ... compensation to settle claims from U.S. owners of cars with larger diesel engines that the company rigged to cheat on emissions tests. The proposed settlement filed late Tuesday, Jan. 31, 2017 in U.S. District Court in San Francisco covers owners of some 75,000 Audi, Volkswagen and Porsche cars with 3.0-liter diesel engines. (AP Photo/Carlos Osorio, File) (The Associated Press)

Volkswagen has agreed to pay at least $1.2 billion in buybacks and compensation to settle claims from U.S. owners of cars with larger diesel engines rigged to cheat on emissions tests.

Continue Reading Below

The proposed settlement filed late Tuesday in U.S. District Court in San Francisco covers some 75,000 Audi, Volkswagen and Porsche cars with 3.0-liter diesel engines.

Owners of older models that cannot be fixed to meet pollution standards will be offered buybacks and compensation. People with cars that can be fixed will get compensation of up to $16,114 — if VW can come up with a fix by an agreed deadline. If not, buybacks could push the cost as high as $4.04 billion.

Volkswagen has already agreed on a settlement for some 500,000 smaller, 2.0 liter diesel engines.