VW may buy back 115,000 U.S. cars

VW 'dirty diesel' emission testing

Volkswagen Group is rumored to be buying back about 115,000 cars in the United States as a result of the emissions scandal, a German newspaper hears.

VW expects it will have to either refund the purchase price of about a fifth of the 580,000 diesel vehicles affected or offer a new car at a significant discount, the Sueddeutsche Zeitung said a report today.

The automaker expects that the rest of the vehicles will need major refits, incurring significant costs for parts and a long stay at the garage as parts of the exhaust must be reconstructed and approved, the newspaper reported.

VW could not be immediately reached for comment.

On Tuesday, VW brand chief Herbert Diess said he was confident the automaker would reach agreement with U.S regulators to bring the affected diesel vehicles into compliance with U.S. emissions laws. Diess said fixing older VW cars equipped with 2.0-litre diesel engines would be more difficult than bringing more recent models into compliance.

Some U.S. regulators and lawmakers have said VW may have to buy back older models. Diess did not say whether VW was discussing that, but said he was optimistic an agreement with U.S. regulators would be reached soon.

The U.S. Environmental Protection Agency said on Wednesday that "recall discussions with the company have not produced an acceptable way forward. EPA continues to insist that VW develops effective, appropriate remedies as expeditiously as possible."

The U.S. Justice Department on Monday sued Volkswagen for up to $48 billion for allegedly violating U.S. environmental laws. Reuters/Automotive News