Porsche To Pay $80 Mln To Resolve Fuel Economy Claims On U.S. Vehicles

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Volkswagen AG (VOWG_p.DE) and its Porsche AG unit have agreed to a class-action settlement worth at least $80 million. To resolve claims it skewed emissions and fuel economy data on 500,000 Porsche vehicles in the United States.

The settlement, filed in U.S. District Court in San Francisco, must be approved by a federal judge. It covers 2005 through 2020 model year Porsche vehicles. After owners accused the automaker of physically altering test vehicles that affected emissions and fuel economy results.
Owners of eligible vehicles will receive payments of $250 to $1,109 per vehicle.

VW settled U.S. criminal and civil actions prompted by the cheating scandal for more than $20 billion. The automaker pleaded guilty in 2017 to fraud, obstruction of justice and falsifying statements.
Lawyers for the Porsche owners said the automaker physically altered the hardware – gears. Connecting the drive shaft and rear axle – and manipulated the software of testing vehicles. The test vehicles emitted fewer pollutants and were more fuel efficient than the production vehicles consumers bought or leased.

Settlement documents say testing showed fuel economy may have been 1-2 miles per gallon lower than listed on vehicle labels.
The lawsuits were prompted after a whistleblower at Porsche reported at least one suspected defeat device in certain gasoline vehicles. Which prompted Porsche to report these findings to German and U.S. regulators, the lawsuit said.
The suit said in late 2015, Porsche management commissioned a systematic review that soon determined Porsche’s gas fleet was violating emissions test rules but was not immediately disclosed to U.S. regulators.

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