Volkswagen Canada will reimburse approximately 105,000 Canadians affected by a recent diesel engine scandal.
The drivers of vehicles with 2.0 litre TDI engines launched a class-action suit against Volkswagen. A deal between the two parties has been reached and approved in principle. The agreement is expected to be signed on Monday in Ontario Superior Court in Toronto. A similar court action was also taking place in Montreal.
Canadians will get their settlements if the proposed deal gets court approval in Ontario and Quebec in March 2017.
To be eligible for compensation, the 2.0 litre TDI-equipped vehicles must be one of the following:
If the deal passes, owners will be able to sell their vehicles back to Volkswagen Canada, trade them in or get them fixed. Affected vehicle owners will also get between $5,100 and $8,000 in compensation, depending on the make and model of their vehicle.
"It's a huge number," said Strosberg. "No corporation has paid that money in Canadian history. It is a watershed moment."