At the same time as legal developments south of the border, Volkswagen Group Canada and Canadian class counsel announced both the Québec and Ontario courts have granted approval of the nationwide settlement agreement to resolve consumer claims in Canada related to the two litre diesel emissions "matter" for approximately 105,000 affected vehicles.

The approved settlement agreement provides for cash payments to eligible owners and lessees of Volkswagen and Audi two litre TDI vehicles. Many of these settlement class members will also have choices that may include selling or trading in their vehicle, or terminating their lease without any early termination penalty, or keeping their vehicle and receiving an emissions modification that has been approved by regulators together with an extended emissions warranty.

Maria Stenstroem, chief executive officer, Volkswagen Group Canada, said: "Approval of the settlement is an important milestone in our journey to making things right in Canada. [We are] committed to ensuring that the settlement programme is carried out as conveniently as possible for our affected… customers. We are devoting significant resources and personnel to ensuring their experience with the settlement programme is a positive one."

The approved nationwide settlement programme includes:

  • Cash payments to eligible current and former owners and lessees of approximately 105,000 affected vehicles nationwide.
  • Many of these settlement class members are also eligible to choose to sell their vehicle to Volkswagen (the buyback option) or terminate their lease without any early termination penalty, or, if an emissions modification is approved, keep their vehicle and have it modified at no charge and receive an extended emissions warranty.
  • A vehicle's value for a buyback will be determined based on the Canadian Black Book® Inc. wholesale value as of September 18, 2015, with adjustments for factory options and mileage at the time of the buyback offer.
  • Eligible owners can also choose to trade in their vehicle and apply its fair market value at the time of the trade-in towards the purchase of a new or used Volkswagen or Audi vehicle. In addition, they will receive payment of any amount by which their vehicle's wholesale value as of September 18, 2015 exceeds its fair market value at the time of the trade-in.

Starting on 28 April, Canadian settlement class members and US customers with affected vehicles that were first sold or leased in Canada may submit claims for benefits.

As their claims are approved, claimants will, where applicable, be able to schedule appointments with their preferred dealership in Canada to complete their settlement transactions.