The automaker had in June agreed to a similar deal with U.S. owners, in which it would spend about $10 billion to buy back or fix 475,000 U.S. vehicles.
Volkswagen also agreed to pay a C$15 million civil administrative monetary penalty in connection with the Canadian settlement.
“Volkswagen’s primary goal has always been to ensure our Canadian customers are treated fairly, and we believe that this proposed resolution achieves this aim,” said Volkswagen Group Canada CEO Maria Stenstroem. Two Canadian courts will hold approval hearings around the end of March. Volkswagen will pay legal fees to the suing owners’ lawyers separately from the settlement fund.
Most of the 105,000 Canadian owners will get between C$5,100 and C$5,950 in compensation in addition to the value of the vehicle or they get the vehicle repaired.
Volkswagen is expected to announce a deal on Tuesday to address another 80,000 polluting 3.0-liter vehicles in the U.S. Reuters reported Friday that deal will include Volkswagen’s agreement to spend more than $200 million to offset additional excess U.S. diesel pollution and offer to buyback about 20,000 of the polluting vehicles, while fixing the other 60,000, Automotive News reports.