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Volkswagen Proposed To Pay Its U.S. Dealers $1.21 Billion Over Dieselgate

Volkswagen has decided to pay $1.21 billion to is US brand dealers over the Dieselgate situation.
Studio shot of TDI engine from Volkswagen 6 photos
Photo: Volkswagen
TDI turbo diesel engineTDI turbo diesel engineTDI turbo diesel engineTDI turbo diesel engineTDI turbo diesel engine
The German corporation will split the payments over 18 months to each of its 652 U.S. dealers. The said dealers will each receive an average of $1.85 million over the term, Business Insider notes.

Apparently, the decision is part of the $16.5 billion settlement deal that was announced in August as having received a principle approval.

Most likely, the amounts will be adjusted judging how many automobiles with a “defeat device” were traded by each dealer. We will probably learn more about the procedure once the settlement deal receives its final approval.

The motivation of the payments made to the dealers is linked to the massive hit to the German brand’s image, which has caused sales to plummet for some representatives.

The inability to sell any vehicles with TDI engines did not help the situation one bit, so Volkswagen is doing the right thing for its dealers, which have been hit by the main company’s decisions.

Along with the financial compensation plan, Volkswagen will also buy back diesel-engined vehicles that the dealers cannot sell. The automaker has also suspended “capital improvements” it requested the dealers to make in the next two years.

The said improvements could have been associated with the format of the showrooms, along with other investments that will be delayed.

Volkswagen has already confirmed that the $1.21 billion payment to its American dealers has been submitted to American authorities. A Federal judge must still approve the amounts that are intended for the dealers, so it will take some time until this is final.

The same goes for the entire Dieselgate settlement, so be patient if you have a vehicle that has been affected by it, and do not fall for any potential scams that you might be proposed before the deal goes through authorities.

It is important to note that Volkswagen has yet to receive the EPA’s approval for its proposed fixes for the 475,000 units fitted with 2.0-liter TDI engines that were sold in the USA with emissions test cheating software. The same problem exists for the approximately 85,000 vehicles sold in the U.S. with 3.0-liter TDI power plants.
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About the author: Sebastian Toma
Sebastian Toma profile photo

Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
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