Volkswagen officially acknowledges US dealer hassle, agrees to pay $1.208 billion image

As per the recent report, the German automaker has decided to agree to a huge settlement for its US dealers in relations to the Dieselgate scandal – the payback including cash compensation, car buybacks and more.

Volkswagen has confirmed it has agreed to pay $1.208 billion to dealers in the United States for the related losses and costs pertaining to the ongoing Dieselgate scandal. The lawyers of the dealers also decided to agree to the deal for the diesel emissions scandal – but there’s need for approval from the United States District Court for the Northern District of California before the agreement becomes final. The VW brand is estimated to have 652 dealers in the country – so the average payment would be of $1.85 million for each showroom – the payment will take place over 18 months and will include cash incentives. The carmaker has also agreed to buy back unsold diesel models and will refrain from asking certain improvements at the stores.

The first news about the agreement surged back in August but without anyone revealing specifics. The showrooms went to court in April as they were forbidden to sell diesel vehicles and lost customers due to the bad press. Through September, VW delivered 231,268 vehicles in the US – 12.47 percent less than during the same period in 2015, when it was anyways incurring losses as well.