Volkswagen will pay up to $140 million in compensation to customers affected by its diesel emissions scandal.

Details have emerged of a class action settlement submitted to the Federal Court, compensating motorists who bought diesel-powered Volkswagen, Skoda and Audi vehicles affected by the issue.

Around 100,000 vehicles in Australia are fitted with 2.0-litre “EA189” TDI engines, suggesting each of those customers could receive about $1400 each.

It comes after customers complained about diminished resale values based on the manufacturer’s diesel emissions cheating scandal. Buyers are also put off by fuel consumption that does not match advertised figures.

A number of class action suits have been launched, including one led by Maurice Blackburn Lawyers.

Principal lawyer Julian Schimmel said the settlement is “a significant victory for motorists”.

“This is an important step in providing a measure of justice and redress to the thousands of Australian motorists who claim they were financially impacted by the diesel emissions issue,” he said.

Volkswagen says full settlement of the case, including payments approved by the Federal Court, is likely.

The settlement is on a “no-admissions basis”.

Additionally, civil action pursued by the ACCC is “close to finalisation”.

“A resolution between the parties is expected shortly,” a statement from the manufacturer said.

“The details are confidential at this time.”