Volkswagen to pay $1.21 billion to settle U.S. dealer claims

by SpeedLux
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Volkswagen confirmed that it will make $1.21 billion in payments to 652 U.S. brand dealerships as part of its $16.5 billion diesel emissions settlement to this day.

Volkswagen’s dealers will get approximately $1.85 million each on average over 18 months under the settlement that was first revealed in principle in August.

Independently, the U.S. Justice Department, Federal Trade Commission and attorneys for owners of 475,000 polluting diesel vehicles submitted legal documents late Friday asking a federal judge to give final approval to buy-back offers and diesel remediation efforts at an October 18 court hearing.

A filing by legal representatives for company dealers says Volkswagen won’t offer any U.S. diesel cars for the 2016 and 2017 design years. The company, which has actually been barred from selling all diesel cars in the United States since late 2015, said earlier this month it doubts whether it will ever sell diesel vehicles in the United States again.

As part of the settlement with Volkswagen brand dealerships, the automaker will continue making some incentive payments to dealerships, buy back diesel automobiles that dealers can’t sell and suspend capital improvements for two years that it desired dealers to make. A federal judge should still approve the settlement.

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