Volkswagen
VW, EPA expect to announce diesel settlement on Thursday. In Picture: An American flag flies next to a Volkswagen car dealership in San Diego, California Sep. 23, 2015.Reuters

German car-maker Volkswagen is planning to offer buyback of up to 500,000 units of diesel cars in the United States, which have been affected by the 'diesel gate' scandal. According to a Reuters report, Volkswagen and the U.S. officials have finally reached on an agreement that could involve buying back the affected diesel models in the U.S. The auto-maker is expected to make an announcement regarding the same on Thursday, April 21.

U.S. District Judge Charles Breyer had in March given Volkswagen time until April 21 to detail the plans to fix the problem with its affected model. The latest decision seems to have been made in the wake of this deadline.

"Proposal may include a vehicle buy-back plan or a fix approved by the relevant regulators that allows the cars to remain on the road with certain modifications," Breyer was quoted as saying in March.

According to the Reuters report, the company would offer buyback of up to 500,000 models with 2.0-litre diesel I-4 engine. The offer is unlikely to include the 3.0-litre TDI V-6 model, of which around 80,000 units have been affected by the manipulation of the fuel efficiency tests. Volkswagen could also offer to repair the affected model if the U.S. regulators approve the proposal, adds the report.

Although it was being reported that Volkswagen is also planning to offer compensation of $5,000 to customers, Reuters reports that "no decisions on how individual compensation will be awarded have been made."

In September last year, Volkswagen admitted that it fitted a 'cheat device' in some of its diesel models sold in the United States to pass government emissions tests, but in reality, the models emit much higher amounts of nitrogen oxide while being driven on the road.

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