As reported by the Associated Press and numerous other media outlets, Judge Charles Breyer of the Northern District court in San Francisco has issued an order authorizing a test program proposed by Volkswagen for scrapping a set of repurchased vehicles to study the process, timing, costs and logistics of dismantling the violative autos and salvaging them for parts.
In its submission to the Court, VW noted that it believes “it is essential to the effective implementation of the buyback and the lease termination for [VW] to understand fully the process of scrapping vehicles and salvaging their parts.” VW has agreed to provide the California Air Resources Board and the U.S. Environmental Protection Agency with data resulting from the test program, along with information on the disposition of the salvaged parts.
As noted in the Judge’s Order, the consumer plaintiffs’ Steering Committee, the state of California, the U.S. Department of Justice, and the Federal Trade Commission all agreed to Volkswagen’s engaging in the scrap test program as permitted under VW’s separate settlement with the Department. It is hoped that data arising from the scrap test will be useful in guiding the manner and coordination of subsequent salvaging and vehicle destruction attendant to the implementation of the potentially $15 billion U.S. settlement covering close to 500,000 diesel vehicles.
You can view a report from Law360 (subscription).