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Volkswagen emissions scandal: U.S. Judge approves $1.2 billion settlement for dealers

Team OD  | Updated: January 24, 2017, 05:22 PM IST

U.S. District Judge Charles Bayer has announced that 650 Volkswagen dealers in the country will receive an average of $1.85 million as part of the $ 1.2 billion settlement. The Volkswagen dieselgate settlement was approved by the U.S. Judge on Monday. According to a Reuters report, the settlement will be paid to Volkswagen dealers over a period of 18 months.

In September 2015, Volkswagen AG admitted publicly that it had sold cars equipped with a defeat device which could detect when it was being tested for emissions. Accordingly, the engine reduced its emissions while during real world tests it was found to emit 40 times the legal limit. Subsequently, Volkswagen faced a lot of lawsuits in the U.S. as well as European countries.


According to the Reuters report, Volkswagen could be spending as much as $22 billion in the United States towards the settlement of various claims by owners, environmental regulators and U.S. states. The manufacturer has also given consent towards giving payment incentive based on volume. VW dealers will also be allowed to defer capital improvements by two years.

Hinrich Woebcken, North American CEO of VW has stated that the company believes the agreement with dealers 'is an important step in our commitment to making things right for all U.S. stakeholders'.

Source: Reuters


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