Volkswagen to pay $1.21 billion to settle U.S. dealer claims
VW has been barred from selling all diesel vehicles in the United States since late 2015.
The U.S. Justice Department, Federal Trade Commission and lawyers for owners of 475,000 polluting diesel cars filed legal papers asking a federal judge to grant final approval to buy-back offers and diesel remediation efforts at an October 18 court hearing.
A filing by lawyers for company dealers says Volkswagen won't sell any U.S. diesel vehicles for the 2016 and 2017 model years.
The company, which has been barred from selling all diesel vehicles in the United States since late 2015, said earlier this month it is uncertain whether it will ever sell diesel vehicles in the United States again.
As part of the settlement with VW brand dealers, the company will continue making some incentive payments to dealers, buy back diesel vehicles that dealers can't sell and suspend capital improvements for two years that it wanted dealers to make. A federal judge must still approve the settlement. ■