Volkswagen to Enter into a Diesel Emission Settlement with US Brand Dealers
Wednesday, 12 October 2016, 18:25 IST
BENGALURU: The automobile giant, Volkswagen AG has confirmed that the company is willing to make a payment of $1.21 billion to 652 US brand agents for its $16.5 billion diesel emission settlement. The settlement between Volkswagen and dealers also announced that the dealer’s will receive monthly payment of $1.85 million each on average for 18 months.
According to The Times of India, the US Justice Department, Federal Trade Commission and lawyers filed legal papers for the owner’s of the 475,000 pollution diesel cars. The case was registered asking federal judge to grant final approval to buy back offers and diesel remediation efforts on the hearing of October 18.
Since late 2015, the company has also been barred from selling its diesel vehicles in the United States. The legal papers filed by lawyers also proclaim that it is unlikely to sell any of its diesel vehicles in 2016, and 2017.Volkswagen stated that further selling of the diesel vehicles are uncertain in the future. According to the settlement, the company will schedule payments to dealers and also redeem their diesel vehicles that are unable to push for a sale and even set aside the capital improvements for two years.
Looking into the technical solution, Volkswagen will buy-back around 85,000 vehicles equipped with 3.0 litre diesel engine if the regulators are not convinced. Thomson Reuters also reported that there was a recent talk held with the Justice Department about settling of the investigation. In return the Justice Department filing stated that “The United States will continue to vigorously pursue its claims for civil penalties to fully hold (Volkswagen) accountable”.
In contrast, VW also acknowledged that improper software was used to activate pollution controls and the total number of vehicles affected exceeded 11 million diesel vehicles that were sold worldwide.
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