WOLFSBURG (dpa-AFX) - Volkswagen AG's (VKW.L, VLKAF.PK, VOW.BE) agreement to pay 652 U.S. auto dealerships for losses caused by its diesel-cheating scheme will cost the carmaker about $1.2 billion, Bloomberg reported a person familiar with the matter.
That will raise Volkswagen's settlements to resolve U.S. lawsuits that include those by car owners and regulators to $16.5 billion, with the automaker still facing investor claims and possible criminal charges.
Under the deal announced in court Thursday, the company will buy back unfixable used vehicles under the same terms as those given consumers and independent dealers. VW agreed to make cash payments and provide additional benefits to the dealers to resolve their claims, the report said.
Volkswagen reached a $14.7 billion agreement with car owners and U.S. and California regulators that calls for buying back or fixing 480,000 Volkswagens with 2.0-liter engines. The company is also on the hook for $603 million it agreed to pay 44 states, and it faces more state government claims and investor class actions in the U.S., lawsuits in Germany and South Korea and possible criminal penalties in all three countries.
U.S. District Judge Charles Breyer, who last month gave preliminary approval to the carmaker's settlement covering the 2-liter models, pressed on Thursday for a solution for vehicles with 3.0-liter engines. Those models include the Volkswagen Touareg, Porsche Cayenne and Audi Q5.
Breyer ordered the company to file a plan for fixing the 3-liter engines and proof that it works to U.S. regulators by Octeber 24 and report back to him on November 3.
Copyright RTT News/dpa-AFX