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About $6.5 billion will go to car owners and $3.5 billion to the U.S. government and California regulators, said the person, who asked not to be identified because the deal isn’t public yet. Because the U.S. Environmental Protection Agency and the California Air Resources Board haven’t approved VW’s proposed fixes, the deal as of now includes an option for car owners to request their vehicles be repaired, but there’s no timetable for doing so or a guarantee there will be an approved fix, the person said.

Lawyers for car owners are due to submit the proposed deal to the San Francisco federal judge overseeing U.S. lawsuits by June 28. The settlement will include options for car owners to sell their vehicles back to Volkswagen or to terminate their leases early.

Terms of that agreement may change between now and then, the person said. The judge is scheduled to consider the proposal, along with the carmaker’s agreements with regulators, on July 26 before deciding whether to accept it.

Jeannine Ginivan, a Volkswagen spokeswoman in the U.S., declined to comment on the proposed agreement. Spokesman for the Environmental Protection Agency and California Air Resources Board didn’t immediately respond Saturday to messages seeking comment on it.

For a QuickTake explainer on Volkswagen’s emissions scandal, click here.

The proposal is intended to further the German carmaker’s bid to regain consumer confidence while appeasing regulators after admitting in September that it rigged the exhaust system in 11 million diesel cars worldwide to feign compliance with global emissions standards. Chief Executive Officer Martin Winterkorn stepped down less than a week after the news broke, and Volkswagen has so far set aside 16.2 billion euros ($18.3 billion) to cover the costs of the scandal, including repairs and lawsuits.

VW shares have fallen more than 6 percent in Frankfurt since both sides told U.S. District Judge Charles Breyer on April 21 that they had a preliminary agreement.


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