2010 Volkswagen Jetta TDI Sportwagen photographed in Washington, DC, USA. (credit: IFCAR)

Sources speaking to Bloomberg and the Associated Press have said that Volkswagen Group will propose a $10.2 billion settlement in federal court next week. The settlement will reportedly include payouts of $1,000 to $7,000 for owners of certain diesel vehicles that included illegal software to help the company cheat on US emissions tests.

VW Group is facing over 600 lawsuits from customers, consumer protection agencies, and regulators. The suits are being overseen by US District Judge Charles Breyer in Northern California District Court.

In April, Judge Breyer said that VW Group would buy the 482,000 affected 2.0L diesel engines in the US back from owners in addition to paying out “substantial compensation” to affected customers. According to the AP, Volkswagen and Audi owners will be able to choose between having VW Group buy their car back for whatever the car was worth before the scandal broke last summer or keeping their car and letting the manufacturer fix it. It’s unclear whether VW Group will be able to find suitable fixes to make the affected diesel vehicles EPA-compliant. The source speaking to the AP said “any fix would be expensive and likely would require a bigger catalytic converter or injection of the chemical urea into the exhaust to help neutralize the pollution.”