With only one day to go before Volkswagen is supposed to present a workable fix for more than 500,000 diesel vehicles equipped with “defeat devices” designed to cheat emission standards, the carmaker has reportedly reached a deal with U.S. regulators that includes the company paying billions of dollars to compensate owners. 

Reuters, citing German newspaper Die Welt, reports that unidentified sources say Volkswagen will provide owners of emission-cheating vehicles with as much as $5,000 in order to start putting the scandal behind the company and avoid a trial.

Sources close to the negotiations between VW and regulators say that the deal is expected to be presented to U.S. Federal Judge Charles Breyer Thursday.

Last month, Breyer gave VW until April 21 to provide him with a detailed plan to bring the affected vehicles into compliance with clean air laws and compensate owners, or risk going to trial.

That directive was a one-month extension of a previous deadline the judge has issued the carmaker, noting at the time that six months was long enough for VW to find a solution to the issue, emphasizing that every day the cars remain in use additional pollution is emitted.

The sources tell Die Welt that the deal, which doesn’t include a detailed plan to fix the affected cars, isn’t set in stone and could be modified in the future.

VW to pay each U.S. customer $5,000 to settle dieselgate: Die Welt [Reuters]

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