Reports: VW to pay $1 billion to owners for emissions scandal

Volkswagen has agreed to pay $1 billion to owners of diesel-powered cars with devices designed to sidestep federal emissions tests, according to reports. 

A source told The Associated Press that Volkswagen had agreed with the U.S. government to make the payments, though the amount each owner will get under the deal is still in question. Some owners, according to the report, would have the option of getting their cars repaired or bought back by VW. 

{mosads}The Detroit News reported the plan would be revealed on Thursday morning, during a court hearing.

Thursday is the deadline for the German automaker to reach a deal with the federal government on on a compensation plan for owners of such vehicles. 

Federal regulators have accused Volkswagen of selling nearly 600,000 diesel-fueled vehicles with defeat devices designed to skirt emissions tests. Such devices violate the Clean Air Act. 

The Justice Department and Environmental Protection Agency (EPA) sued the company over the workaround in January. The EPA declined to comment on the reports of a deal Wednesday.

The company has apologized for the scandal and has been working with regulators on a deal to fix the cars in question or compensate owners of the vehicles. A federal judge in March ruled the two sides were close enough on a deal that he extended the window to this week to allow them to reach one. 

—This post was updated at 5:54 p.m.