VW agrees to $1 billion settlement in scandal recovery

Volkswagen took an important step in digging out from its emissions-cheating scandal by reaching a $1 billion agreement to settle lawsuits over tainted 3.0-liter diesel engines.

The preliminary accord calls for the German automaker to fix or buy back 83,000 Audi, VW and Porsche vehicles equipped with a so-called defeat device.

The deal includes pledges by Volkswagen to spend $225 million to mitigate environmental damage the autos caused and $25 million to support the use of zero-emission models, the California Air Resources Board and the US Department of Justice said in statements following a US federal court hearing in San Francisco.