German car giant Volkswagen has agreed to pay at least $1.2 billion to fix or buy back 78,000 diesel cars in the United States to settle more emissions-cheating claims.
Without regulatory approval, VW could be forced to buy back all of the cars, costing it about $4 billion.
The deal, another in its long-running emissions scandal, still needs approval from the courts.
Car components company Robert Bosch GmbH, a VW supplier, has also agreed to pay $327.5 million to US owners of affected cars.
VW previously agreed to spend up to $10 billion to compensate the owners of about 482,000 2-liter vehicles after it admitted it had installed secret software to disguise emissions.
On February 1, the Federal Trade Commission (FTC) said that US customers who bought the 3-liter diesel cars would be fully compensated “through a combination of repairs, additional monetary compensation, and buybacks for certain models”.
Owners of 2009 to 2012 models could get between $26,000 to $58,000 for a buyback, depending on the model, mileage, and trim of the car, the FTC said.
For owners and people leasing 2013 to 2016 models, VW is expected to get regulatory approval for a fix that makes the cars compliant with US environmental regulations, the FTC added.
However, if VW fails to get EPA and the California Air Resources Board approval for the modification within a certain time frame, it must offer to buy back those vehicles, upping the amount it has to pay to about $4 billion.