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.