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Volkswagen to fix or buy back 500,000 cars equipped with fraudulent emissions software

The German carmaker reached an agreement with the federal government in court on Tuesday, reports the New York Times. Research firm Kelley Blue Book estimates that it will cost Volkswagen $7 billion to buy back all the affected cars. The settlement comes after it was revealed last year that the company had rigged its diesel vehicles to cheat on pollution tests. 

Besides the cost of the buyback, the company is also facing billions more in fines and penalties that could run as high as $18 billion. And that’s just in the U.S. The company is also facing investigations into the scandal in other countries, including Britain, France, Germany, and South Korea.MG