volkswagen Volkswagen Polo GTI.jpg
Photograph: Volkswagen

German carmaker Volkswagen has reached a settlement in negotiations to compensate US owners of diesel cars equipped with software designed to cheat emissions testing, German newspaper Welt reported late Wednesday.

A VW spokesman refused to comment.

The reported agreement with US authorities comes ahead of a Thursday deadline for VW to offer a plan to modify about 580,000 vehicles sold in the United States, set by a federal court in San Francisco that is hearing hundreds of lawsuits against the carmaker from across the country.

Under the reported agreement, VW would pay every owner of an affected car 5,000 dollars. The company also would bear the cost of repairs to bring the cars into compliance with US air pollution standards.

The agreement was described as an outline, but does not yet contain details such as technical descriptions of how repairs are to be made.

VW admitted in September that it had cheated on exhaust emission tests around the world in cars with diesel engines.

VW's powerful six-member management committee is due to meet Thursday, with the US settlement on their agenda, along with a possible plan to end a dispute over the payment of bonuses for the company's top executives.

Based in the northern German city of Wolfsburg, VW is facing the mounting costs of lawsuits, official investigations, recalls and vehicle modifications, as well as a fall in sales around the world in the wake of the revelations about the diesel emissions affair.

Thursday's management committee meeting is likely to help lay the groundwork for a full meeting of VW's 20-member supervisory board on Friday, which could involve executives finally agreeing to a 30-per-cent cut in bonuses.

The company is facing the launch this month of tough negotiations with union leaders calling for a pact to ensure job protection.

VW indicated in November that it is planning cuts in its workforce, after having announced moves to cap 2016 investment spending at 12 billion euros (14 billion dollars) - a cut of 1 billion euros from recent years.

The German state of Lower Saxony, one of VW's major shareholders, has joined the board's union representative in calling for bonuses to be scrapped.

Next week the company will formally unveil its 2015 annual results, which are likely to reveal the impact of the emissions crisis on the carmaker's earnings.

Related stories

VW sets aside billions to cover scandal costs

Final decision on VW settlement expected within week

VW, US reach settlement in emissions case

Latest news

Plane crashes at airport in Melbourne

A five-passenger charter plane has crashed into a building next to Essendon Airport in Melbourne, with witnesses reporting explosions, fire and black smoke, police said Tuesday.

Air France pilots give green light to lower cost subsidiary

Members of Air France's main pilots union on Monday voted to accept the creation of a new lower cost subsidiary that the flag carrier hopes will help it compete on long-haul routes.

US Army General McMaster tapped as Trump's national security advisor

Army Lieutenant General HR McMaster will be the new White House national security advisor, US President Donald Trump told reporters Monday.

Greece's creditors want sweeping reforms before next bailout payment

Greece must make sweeping reforms to its labour market, pension system and collective bargaining agreements in order to receive its next vital bailout payment, the country's European creditors said Monday.

President wants to recall "politically appointed ambassadors", can't do it without gov't

President Kolinda Grabar-Kitarovic said that many politically appointed Croatian ambassadors were not carrying out state policies but that she could not replace them without the government to appoint career diplomats who would fight for Croatia's interests.

Izetbegovic hopes ICJ will confirm Serbia's responsibility for genocide

The Bosniak member of the tripartite presidency of Bosnia and Herzegovina, Bakir Izetbegovic, on Monday rejected criticism stirred up by the announcement that the International Court of Justice (ICJ) would be requested to review its judgement made after Bosnia sued Serbia for genocide.

British lawmakers locked in heated debate over Trump's state visit

Allowing US President Donald Trump to visit Britain would be akin to "pimping out the Queen," one British lawmaker said Monday during a heated debate in British parliament over two petitions concerning the US leader's future state visit.

Vitaly Churkin, Russia's sharp-tongued ambassador to the UN, dies

Russia's long-time ambassador to the United Nations, Vitaly Churkin, died in New York on Monday, following a career that spanned four decades and saw Russia emerge from the Soviet Union and experience many turbulent events in its relations with the West.

French police raid National Front over European Parliament payments

France's far-right National Front Monday said that investigators had searched its offices in relation to allegations that it misused European Parliament funds.

Unhappy Presidents' Day: Trump still manoeuvring after Sweden comment

Donald Trump used his first Presidents' Day in office to continue trying to talk his way out of comments implying a terrorist attack in Sweden that never happened.

Croatia supports Kosovo's territorial integrity - Grabar-Kitarovic

Croatia's President Kolinda Grabar-Kitarovic on Monday expressed the support to Kosovo's territorial integrity and Euro-Atlantic aspirations during her talks with the visiting Kosovo Foreign Minister Enver Hoxhaj.

Petrov rules out early parliamentary election

Parliament Speaker and Bridge party leader Bozo Petrov on Monday dismissed speculation about a reshuffle of the parliamentary majority, saying an early election was likelier, but that right now he did not see "such a scenario."