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Volkswagen will pay $1.21 billion to settle U.S. dealer claims

WASHINGTON, Sept 30 Volkswagen AG confirmed late Friday it will make $1.21 billion in payments to 652 U.S. brand dealers as part of its $16.5 billion diesel emissions settlement to date.

VW's dealers will receive an average of $1.85 million each on average over 18 months under the settlement that was first announced in principle in August. Separately, the U.S. Justice Department, Federal Trade Commission and lawyers for owners of 475,000 polluting diesel cars filed legal papers late Friday asking a federal judge to grant final approval to buyback offers and diesel remediation efforts at an Oct. 18 court hearing. (Reporting by David Shepardson; editing by Diane Craft)

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