Volkswagen Agrees To $1.21 Billion In Payments To US Dealerships
As part of a settlement with US-based Volkswagen-brand car dealerships, Volkswagen AG has agreed to make a total of $1.21 billion in payments to 652 different dealerships, according to recent reports.
The company confirmed the settlement plan details at the end of last week, bringing further resolution to the damaging scandal — which has resulted in more than $16.5 billion in settlements to date.
Each of the 652 affected dealerships will reportedly receive an average of $1.85 million — paid out over a period of 18 months.
Reuters provides more: “Separately, the US Justice Department, Federal Trade Commission and lawyers for owners of 475,000 polluting diesel cars filed legal papers late Friday asking a federal judge to grant final approval to buy-back offers and diesel remediation efforts at an October 18 court hearing. A filing by lawyers for company dealers says Volkswagen won’t sell any US diesel vehicles for the 2016 and 2017 model years. The company, which has been barred from selling all diesel vehicles in the United States since late 2015, said earlier this month it is uncertain whether it will ever sell diesel vehicles in the United States again.”
Notably, the settlement with Volkswagen-brand dealerships will see the German firm “continue making some incentive payments to dealers, buy back diesel vehicles that dealers can’t sell, and suspend capital improvements for two years that it wanted dealers to make.”
And, perhaps more notably, the settlement agreement is still pending approval by a federal judge.
For further background, see:
Bavaria (German State) Suing Volkswagen Over Diesel Emissions Cheating Scandal
Photo by Michel Curi via Foter.com (CC BY)
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