VW forges U.S. deal arising from diesel emissions scandal

[WorldNews]

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By Alexandria Sage and David Shepardson SAN FRANCISCO/WASHINGTON (Reuters) - Volkswagen AG, driving to move beyond a scandal that has disrupted its global business and sullied its reputation, announced a sweeping U.S. deal on Thursday to buy back or potentially fix about a half million polluting diesel cars and set up environmental and consumer compensation funds. The settlement, which sources and analysts said could cost VW at least $10 billion, is not likely to end the Dieselgate controversy that began last September when the world's No. 2 automaker admitted using sophisticated secret software in its cars to cheat exhaust emissions tests. Despite the potentially big price tag, Volkswagen shares rose 6 percent on Thursday after rising nearly 7 percent on Wednesday on news of the agreement, which must be finalized by June 21.

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