VW, EPA reach deal on rigged emissions tests

Volkswagen Group has reached a deal with the Environmental Protection Agency (EPA) regarding its cheating on emissions tests.

A federal judge in San Francisco said Thursday that Volkswagen has agreed to the broad outlines of a deal with the EPA, The Wall Street Journal reports.

{mosads}The deal covers 500,000 diesel cars with 2-liter engines. Cars with 3-liter engines, which also had software designed to cheat emissions tests for nitrogen oxides, are not included in the deal.

District Judge Charles Breyer had told VW and the EPA that a deal with the agency and California regulators was necessary before the automaker could resolve more than 600 lawsuits from car owners over the scandal.

Thursday was the deadline for the deal, and Breyer had threatened to schedule the lawsuits for trial.

The deal reached Thursday includes buybacks, “substantial” compensation and vehicle modifications for vehicle owners, the Journal said, adding that lessees will be able to return their cars.

Bloomberg reported that the deal would cost $10 billion, citing an unidentified person familiar with it.