Volkswagen reaches settlement deal for 3.0L diesel vehicles in Canada

A giant logo of the German car manufacturer Volkswagen is pictured on top of a company's factory building in Wolfsburg, Germany on Sept. 26, 2015 . (AP / Michael Sohn)

TORONTO -- Volkswagen has reached a $290.5-million deal to settle claims in Canada covering 20,000 3.0-litre Volkswagen, Audi and Porsche diesel vehicles that were caught up in an emissions cheating scandal.

The agreement was reached by Volkswagen and Canadian class counsel in consultation with the Commissioner of Competition.

In addition to the proposed class settlement, which is subject to court approval, Volkswagen Group Canada has agreed to pay a $2.5-million civil penalty.

If approved, cash payments will be made to roughly 15,000 owners and lessees of model year 2013-2016 Volkswagen, Audi and Porsche 3.0L diesel vehicles who receive the recall for an emissions repair as well as an extended emissions warranty.

Payments will also be made to owners and lessees of affected model year 2009-2012 vehicles, as well as additional options that include buyback, trade-in, early lease termination or, if approved by the U.S. EPA and available by recall in Canada, a modification to reduce emissions.

The agreement follows a settlement deal last year covering Volkswagen and Audi vehicles with 2.0-litre diesel engines.