Updated: 2:15 p.m.

(Bloomberg) -- Volkswagen AG agreed to pay $1.2 billion toresolve U.S. consumer claims over tainted large diesel engines, thelatest step in working through a pile of legal challenges resultingfrom its emissions-cheating scandal.

The proposed settlement, with the Federal Trade Commission and owners of about78,000 cars, includes compensating consumers as much as $16,114 andfixing or buying back affected 3-liter diesel models such as thePorsche Cayenne and VW Touareg SUVs and Audi A8 sedan, according tofilings in San Francisco federal court.

We will continue to work to earn back the trust of all ourstakeholders,” Hinrich Woebcken, Volkswagen Group of America’schief executive officer, said in a statement. The agreement meansthat all customers with affected vehicles in the U.S. now have “aresolution available to them.”

The accord comes as partisan bickering escalates over PresidentDonald Trump’s pick to lead the Environmental Protection Agency,the nation’s chief regulator of auto emissions. Senate Democrats onWednesday boycotted a committee vote to advance the confirmation ofOklahoma Attorney General Scott Pruitt amid questions about hiscommitment to upholding clean air and water protections.

Consumers don’t have to worry about Trump interfering with thesettlement through any overhauls at the EPA or Justice Department,said lead plaintiffs’ attorney Elizabeth Cabraser.

“We are very confident that no matter what happens inWashington, we have a federal district court that all theplaintiffs have entrusted to have ongoing jurisdiction over thiscase until everything is resolved," she said in a conference call.“It’s not just the Department of Justice and EnvironmentalProtection Agency who can enforce the consumer’s interests. It’salso up to us as well as the FTC.”

Biggest carmaker

Volkswagen, the world’s biggest automaker, admitted in September2015 that about 11 million cars with small diesel engines wererigged to cheat on emissions tests, sparking the worst crisis inthe automaker’s history. Costs resulting from the scandal so farhave blown past the 18.2 billion euros ($19.6 billion) that thecompany has set aside to deal with the issue.

The tally of costs in North America includes a $14.7 billionagreement reached last year to buy back cars with 2.0-liter dieselengines and a $4.3 billion settlement of criminal and civilpenalties in the U.S. reached in January, in which the companypleaded guilty to three felony counts.

Volkswagen is also involved in investor lawsuits in the U.S. andin Germany related to how the emissions-test rigging affected thestock price, as well as consumer lawsuits and a criminal probe inGermany.

'Defeat device'

The 3-liter settlement, filed just before midnight Tuesday in SanFrancisco, requires Volkswagen to compensate affected customers,fix about 58,000 cars and buy back as many 20,000 Touareg and AudiQ7 sport utility vehicles. Repurchasing those cars comes on top ofthe 482,000 2-liter autos that are being bought back or repairedunder a previous agreement.

Related: VW reaches deal for emissions-cheating Audi,Porsche models

Owners of unfixable cars will be eligible for cash compensationof as much as $13,880, according to a statement from theplaintiffs’ lawyers. Drivers with vehicles that can brought up tostandard could receive as much as $16,114. The deal finalizes termsoutlined in December, when the cost was estimated at about $1billion. VW’s burden from the issue will increase to as much as$4.04 billion if the repairs don’t take place on time, according tothe filing.

Bosch deal

In a separate U.S. settlement on Tuesday, German partssupplier Robert Bosch GmbH, which provided the engine-controlsoftware to Volkswagen, agreed to pay $327.5 million overallegations that it played a role in developing the cheatingtechnology.

U.S. District Judge Charles Breyer is scheduled to consider theproposed 3-liter settlement on Feb. 14. If he grants preliminaryapproval, car owners and others would be given a chance to commenton the agreement before it becomes final.

The case is In Re: Volkswagen “Clean Diesel” Marketing,Sales Practices and Products Liability Litigation, 15-02672,U.S. District Court, Northern District of California (SanFrancisco).

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