US judge approves VW dealers $1.2 billion settlement
>> Reuters
Published: 24 Jan 2017 09:44 AM BdST Updated: 24 Jan 2017 09:44 AM BdST
-
A Volkswagen logo is pictured at the newly opened Volkswagen factory in Wrzesnia, Poland, September 9, 2016. Reuters
Volkswagen AG's dealers will receive an average of $1.85 million in a $1.2 billion settlement approved by a US judge on Monday over its diesel emissions scandal.
US District Judge Charles Breyer said the 650 US dealers would be paid over 18 months, ruling the settlement "fair, reasonable, and adequate."
VW also agreed to keep making volume-based incentive payments to dealers, and will allow them to defer capital improvements for two years. In total, VW has now agreed to spend up to $22 billion in the United States to address claims from owners, environmental regulators, US states and dealers stemming from the excess vehicle emissions.
VW admitted in September 2015 to installing secret software in its diesel cars to cheat exhaust emissions tests and make them appear cleaner in testing than they really were. In reality, the vehicles emitted up to 40 times the legally allowable pollution levels and dealers say the resulting scandal tarnished the brand and cost them sales.
VW North American Chief Executive Officer Hinrich Woebcken said earlier the company believed the agreement with "dealers is a very important step in our commitment to making things right for all our stakeholders in the United States."
Beyond the $1.2 billion cash payments, the settlement is valued at total of more than $1.6 billion for the VW brand dealers, said law firm Hagens Berman in a statement. The settlement includes $270 million through a provision for prior payments and $175 million in the continued sales incentives.
"The Volkswagen-branded franchise dealer class-action settlement finalized today represents an outstanding result for Volkswagen’s affected franchise dealers who, like consumers, were blindsided by the brazen fraud that VW perpetrated," said Steve Berman, managing partner of Hagens Berman and lead attorney for the dealers.
-
Tesla hunts for design chief
-
Apple targets car production by 2024
-
Harley-Davidson is leaving India
-
Tesla to launch in India in 2021: Musk
-
Electrified by Tesla, Chinese startups are on the charge
-
COVID-19, electric vehicles to reshape Thai auto industry
-
Hyundai to halt S Korea output
-
Harley halts electric motorcycle production
Most Read
- How to register for coronavirus vaccine in Bangladesh
- Bangladesh plans to launch COVID vaccine registration app on Jan 27
- Bangladesh ready to roll out Oxford COVID vaccines after long wait
- WHO issues new clinical advice on treating COVID-19 patients
- Bangladesh agricultural researchers blame government failure to control syndicates for price spikes
- Man dies in clashes over Chattogram city polls
- Bangladesh plans to reopen schools in Feb
- Germany fears AstraZeneca vaccine won't get EU approval for those over 65: Bild
- Captain Nurul Huq, first chief of Bangladesh Navy, dies at 86
- India to honour Sanjeeda Khatun, Sajjad Ali Zahir with Padma Shri award