Settlement has been reached between Volkswagen and around 91,000 claimants in a class action in the English High Court over the "Dieselgate" scandal.
Volkswagen will pay £193m in total to British claimants over the diesel emissions tests cheating which came to light in 2015, in which devices were installed to reduce nitrogen oxide readings during tests. The amounts to be paid to individual owners remain confidential, and no admission in respect of liability, causation or loss has been made.
A separate contribution is being made towards the claimants' legal costs and other fees.
In April 2020 the High Court ruled that Volkswagen was liable to pay compensation in England & Wales to the owners of around 1.2m VW, Audi, Seat and Skoda vehicles.
The company has paid out billions of dollars in damages, refunds and court fees, particularly in the United States and Germany.
Legal firm Slater & Gordon, which represented around 70,000 of the UK claimants, said it was "delighted to have secured such a significant financial settlement for many thousands of Volkswagen Group car owners. Settlement of the group action avoids the need for a lengthy, complex and expensive trial process, and achieves a financial result that is fair and right for all claimants".
CEO David Whitmore commented: "Over the last five years, Slater and Gordon has rightly dedicated a significant and unwavering commitment to this case, providing an expert voice to consumers.
"This settlement is the product of exceptional work by our dedicated specialist team. We would also like to thank litigation funder Therium, which since 2016, has provided the funding that allowed claimants to pursue their claims through the courts."