Volkswagen agrees to fix or buy back 500,000 diesel cars in U.S.

The Volkswagen diesel scandal just got a lot more expensive for the German carmaker.

On Thursday afternoon, Volkswagen agreed to fix or buy back roughly 500,000 of its diesel-powered models in the U.S affected by dieselgate. The agreement is a part of a federal court settlement announced in San Francisco, according to the New York Times.

VW proposed a repair for the cars, which had been fitted with emissions test-defeating software, earlier this year. However, the California Air Resources Board rejected the repairs because they do not put "vehicles into compliance and reduce pollution." Read more...