Volkswagen will pay $1bn to buy back new batch of emissions-cheating vehicles

German car-maker Volkswagen AG has agreed a deal to buy back or fix a new batch of vehicles, which are fixed with emissions-cheating software, at a cost of up to $1bn to the company.

The company is still making efforts to recover from one of the biggest scandals in its history last year, when it admitted to having fitted millions of vehicles with emissions-cheating devices. The total legal costs arising from the incident is expected to surpass $30bn.

The latest settlement was agreed in federal courts in the United States on Tuesday, and will allow around 83,000 diesel vehicles to be either returned or fixed.

A statement from Volkswagen said it was "another important step forward in our efforts to make things right for our customers".

Volkswagen, Audi and Porsche cars from 2009 onwards are among those which will be affected by the buyback programme.

Several other agreements have been made in the last year with government regulators and agencies, together with consumers, including a $14.7bn settlement for a scheme involving 475,000 vehicles.

The Environmental Protection Agency, which instigated the investigation against Volkswagen in 2015, welcomed the latest agreement.

"This settlement is about taking pollution out of the air we breathe," said Cynthia Giles, the EPA's assistant administrator for enforcement and compliance assurance.