VW has already put aside billions for settling legal cases brought about by the emissions scandal; affected showroom stock will be bought back

Volkswagen is to pay a total of $1.21 billion (£939m) compensation to the US dealers, represented by lawyers Hagens Berman , who took legal action against the German car maker in the midst of the ongoing emissions scandal.

The sum equates to approximately $1.9m (£1.5m) for each of the 652 affected dealers, but the exact amount of compensation awarded to each dealer depends on a number of factors, including the size of the dealer and the size of its market. 

The compensation will be paid within 18 months and certain unfixable models will be bought back by Volkswagen.

Steve Berman, managing partner in Hagens Berman, said before the deal was struck: “Our investigation has uncovered no evidence that VW dealers had any idea that VW was selling them cars that had defeat devices installed. These 652 mostly small business owners were blindsided by the diesel emissions scandal and have seen the value of their businesses plummet.”

The legal firm also noted that the actions taken against Bosch GmbH in the US were still ongoing and had not been settled as part of the Volkswagen settlement. It also stated that care was taken not to give the dealers preferential treatment over consumers affected by the scandal.

Around half a million cars in the US have been implicated in the scandal, with around 11 million vehicles affected globally. Volkswagen is maintaining its stance on not offering compensation to European customers, who make up a large proportion of those 11 million, because it says the fix here is more conclusive.

According to the United States Department of Justice, the technical details of Volkswagen's proposed US fix are still being finalised. About half of affected US owners have requested to be paid compensation rather than receive the fix once it is issued.

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Comments
6

26 August 2016
Biting every grain of dust in the United States, may prepare Volkswagen to sort out the mess it has created in the rest of the world. The US is home to only about a tenth of the faulty Volkswagens. There are more than 10 million of these polluting the world over. More than 8 million in Europe alone! Shame!

26 August 2016
There are many -issed off VW Audi buyers out here that will vote with their wallet and stay away from their cars .I and my wife along with at least two other friends are waiting with keen interest.Like the looks of JLR at the mo along with Mecedes.

26 August 2016
Ski Kid wrote:

There are many -issed off VW Audi buyers out here that will vote with their wallet and stay away from their cars .I and my wife along with at least two other friends are waiting with keen interest.Like the looks of JLR at the mo along with Mecedes.

Would that be the same Mercedes who have a law suit filed against them in the US for having an alleged cheat device fitted to their diesels?

27 August 2016
That is being kept rather low key, did not know that Mercedes are being investigated.

3 October 2016
Is this why VW has become more emotional...all the tears

3 October 2016
Around 8.5 million Europeans would be thinking why they weren't born in the USA where the government puts consumers first and makes the con artists pay up whilst EU plays the less than convincing tune of tangled in jurisdiction letting Volkswagen exploit legal loop holes.

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