Audi Direct-Shift Gearbox Settlement Gets Initial Approval

A proposed Volkswagen Group of America Inc. settlement that would provide Audi owners reimbursement for one past transmission repair to address jerky shifting, and an extended warranty covering part of the cost of a future repair, has won preliminary approval from a federal court in California.

Up to $12,000 in out-of-pocket costs for the full replacement of a direct-shift gearbox transmission, or up to $5,000 for replacement of a sub-component, would be covered, according to Judge Haywood S. Gilliam Jr. of the U.S. District Court of the Northern District of California.

Under the agreement, VW won’t oppose attorneys’ fees up ...