Volkswagen dealers in the US to get $1.2bn compensation

Volkswagen dealers in the US will get an average of $1.85m (£1.47m) compensation each in a $1.67bn package which has received approval from a US judge over the VW diesel scandal.

The order was granted by Judge Charles Breyer of the US District Court for the Northern District of California.

The full $1.67bn package is made up of nearly $1.2bn in new cash, $270m through a non-offset provision for prior payments and $175m in ongoing sales incentives.

“The Volkswagen-branded franchise dealer class-action settlement finalised represents an outstanding result for Volkswagen’s affected franchise dealers who, like consumers, were blindsided by the brazen fraud that VW perpetrated,” said Steve Berman, managing partner of Hagens Berman which represented dealers in court.

“We are pleased to have been able to reach a swift resolution to allow these small business owners to get back to business and offset the tremendous hit to franchise value, revenue and profits suffered due to VW’s Dieselgate scandal,” he said in a statement.

In the UK, thousands of UK motorists are to launch a lawsuit against Volkswagen over the issue.

The class action is being led by UK law firm Harcus Sinclair UK which specialises in large group litigation.

The group has applied for a group litigation order order in claims against VW, Audi, Seat and Skoda arising out of the Volkswagen emissions scandal where the carmaker fitted cheat devices to bypass emissions legislation. The application will be heard in the High Court on 30 January.

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