Volkswagen dealers will get an average of $1.85 million in a $1.2 billion settlement authorized by a U.S. judge on Monday concerning its diesel emissions scandal.
U.S. District Judge Charles Breyer stated the 650 U.S. dealers would be paid over 18 months, ruling the settlement “fair, reasonable, and adequate.”
The automaker also consented to keep making volume-based incentive payments to dealerships, and will permit them to defer capital enhancements for 2 years. Overall, Volkswagen has now agreed to pay up to $22 billion in the United States to deal with claims from owners, environmental regulators, U.S. states and dealers coming from the excess car emissions.
Volkswagen North American CEO Hinrich Woebcken stated earlier the company thought the agreement with “dealers is a crucial step in our commitment to making things right for all our stakeholders in the United States”.
Beyond the $1.2 billion money payments, the settlement is valued at overall of more than $1.6 billion for the Volkswagen brand dealers, stated law firm Hagens Berman. The settlement includes $270 million through an arrangement for prior payments and $175 million in the continued sales incentives.
“The Volkswagen-branded franchise dealer class-action settlement completed today represents an impressive result for Volkswagen’s affected franchise dealerships who, like customers, were blindsided by the brazen fraud that Volkswagen committed,” stated Steve Berman, the lead attorney for the dealers and managing partner of Hagens Berman.