Volkswagen Dealers to Collect $1.85 Million Each as Owners Flock to Buyout Provide

Volkswagen logo badge (Francis Storr/Flickr)

Volkswagen AG is producing good with its once-ornery U.S. dealer network to the tune of $ 1.85 million per dealer.

The automaker announced information of its $ 1.21 billion dealer settlement late yesterday, Reuters reports, with cash payouts to its 652 dealers spread out over the next 18 months. Meanwhile, when-loyal Volkswagen owners have hopped on the buyout bandwagon in massive numbers.

Of the 475,000 emissions-cheating two.-liter TDI models sold in the U.S., 311,000 owners have so far opted to take component in the customer settlement. For now, the only alternative is a buyback and cash payout, as regulators haven’t approved a fix for the polluting cars. Below the settlement, 85 % of the afflicted cars have to be off the road by June 2019.

No matter whether they’ve soured on the brand or are not confident Volkswagen can ever offer you a fix, a lot of are turning to the cash choice. One particular longtime Volkswagen owner told TTAC that he’ll hand more than his vehicle on November 2, claiming he does not think the firm can find a fix —especially 1 that can be incorporated into his wagon.

About three,300 owners have opted out of the settlement, preserving their proper to fight the automaker in a class-action lawsuit.

A federal judge could sign off on the settlement on Oct. 18, after the U.S. Justice Division, Federal Trade Commission and lawyers representing U.S. owners gave their approval yesterday.

Below the dealer agreement, some of the automaker’s incentive payments will continue, and the company will buy back any remaining unsold diesel automobiles. Capital improvements to dealerships requested by the automaker are suspended. Also incorporated in the agreement is the stipulation that Volkswagen can not sell any diesel cars in 2016 or 2017. (The automaker isn’t sure if it even desires to marketplace a U.S. diesel once more.)

Whilst the agreement moves Volkswagen closer to its goal of placing the diesel nightmare behind it, its 3.-liter diesel models stay in limbo. About 85,000 Volkswagen, Audi and Porsche three.-liter TDI models await a settlement in the U.S., with the automaker hoping for a technical repair. If it does not find a single by the finish of October, its only selection is another costly buyback system.

[Image: Francis Storr/Flickr]

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