A San Francisco judge has reported "substantial progress" in negotiations between US authorities and the German carmaker. Volkswagen has been rocked by an emissions scandal affecting up to 11 million vehicles worldwide.
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A US federal judge on Friday said he was optimistic about reaching an agreement with German carmaker Volkswagen concerning 80,000 3.0-liter engine models affected by illicit software that defeats emissions tests.
"I'm pleased to report that there has been substantial progress and I'm optimistic that there will be a resolution of this matter," said US District Judge Charles Breyer in San Francisco during a briefing.
The US court endorsed a record-setting $15 billion (14.35 billion-euro) compensation deal that covers nearly 500,000 2.0-liter Volkswagen diesel vehicles equipped with the software.
However, the deal did not include the 3.0-liter engine models. The company has negotiated with US authorities to reach an agreement on compensation, which could include a buyback program or the replacement of some components of the vehicles.
A new hearing has been scheduled for Monday to review proposals made by Europe's largest carmaker.
In September 2015, Volkswagen was rocked by revelations that several of its diesel models included software that deliberately cheated emissions tests. The ensuing scandal led to former VW executive Martin Winterkorn's stepping down.
The German carmaker has admitted that up to 11 million vehicles across globe included the illicit software.
10 things you (probably) didn't know about Volkswagen
'Diesel-gate' has everyone talking about the German carmaker. But what do you really know about the company that brought you Das Auto?
Image: picture-alliance/dpa/I. Wagner
The people's car
Did you know that Volkswagen - or the 'people's car' - was Adolf Hitler's brainchild, and that it was developed by Porsche founder Ferdinand Porsche? In 1938, Hitler even had built an entire city just to house the factory and its workers. First known as "City of the [Kraft durch Freude] Car at Fallersleben," it was renamed Wolfsburg on May 25, 1945. To this day, the city remains home to VW.
Image: DW/J. Dumalaon
The world's #1 love-bug
From Hitler's wet dream on wheels to the world's favorite love-bug: The original Beetle - known in Germany as 'Der Käfer' - ruled the list of the world's best-selling car for much of the 20th century. By the time production was discontinued in 2003, more than 21.5 million Beetles had been sold worldwide.
Image: DW/E. Schuhmann
Volkswagen's many faces
The company has come a long way since the 1930s. The Volkswagen Group's garage currently fits 12 brands under its roof. Audi, Bentley, Lamborghini, Porsche and Skoda are among its best-selling subsidiaries, accounting for 37 percent of 2014 sales.
Image: Audi AG
Market domination
Today, Volkswagen really has become the "People's Car": The Group accounts for more than every third car - 36 percent, to be exact - sold in Germany.
Image: picture-alliance/dpa
1 out of 10 cars worldwide
Globally, more than 1 out of every 10 cars sold in 2014 was a Volkswagen Group brand. The company sold more than 10.2 million vehicles in that year. 7 out of 10 were sold outside Germany.
Image: picture-alliance/dpa/Z. Junxiang
US market an uphill battle
The coveted US market has proven to be a real thorn in the eye for the German carmaker. Just 6 percent of its cars - or some 600,000 - were sold abroad. Despite huge investments, its market share there has been stuck at about 2 percent, trailing far behind competitors like GM, Ford and Toyota.
Image: picture-alliance/dpa
Pole position at stake?
In July, 2015 Volkswagen overtook Toyota as the world's top-selling carmaker. It's also the world's biggest automotive company by revenue. In 2014, it reported sales of 202.5 billion euros. Profit after tax came in at 11.1 billion euros. But after the emissions scandal, analysts warn VW's pole position could be at risk.
Image: picture-alliance/dpa
Global employer
As of December 31, 2014, the Group employed nearly 600,000 workers, making it one of the biggest employers worldwide. More than a third - some 270,000 - worked at one of its German locations.
Image: picture alliance/dpa
Germany's biggest industry
The auto industry is the largest sector in the Germany economy, fuelled by the so-called 'Big Three' - Daimler, BMW and VW. Combined, the industry employs nearly 800,000 people - or almost 2 percent of the German workforce.
Image: picture-alliance/dpa/B. Weißbrod
German cars drive exports
The German car industry's total revenue nearly topped 370 billion euros in 2014. It made up about one-fifth of the country's exports, and contributed around 3 percent to German GDP.