Volkswagen, U.S. make 'substantial progress' toward final deal

(Reuters) — Volkswagen A.G. and lawyers for owners and the U.S. government have made "substantial progress" toward reaching a final agreement by late June, a federal judge said Tuesday.

U.S. District Judge Charles Breyer also reiterated that a settlement over the excess diesel emissions scandal will include "substantial compensation" for owners of 482,000 polluting vehicles that emit up to 40 times legally allowable pollution. An agreement in principle for buybacks and potential fixes was announced in April.

Judge Breyer said lawyers for owners suing Volkswagen as well as lawyers for the U.S. Justice Department, the Environmental Protection Agency, the Federal Trade Commission and the company are on track to file the final proposed settlements by June 21.

Judge Breyer said engineering studies and testing are continuing toward reaching a resolution for 80,000 larger 3.0-liter vehicles but offered no timetable for a resolution. Those vehicles emit up to nine times legally allowable pollution.