(Adds details of agreements, VW won't sell 2016, 2017 model
By David Shepardson
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 were filing legal papers late Friday asking a federal judge
to grant final approval to buy-back offers and diesel
remediation efforts at an Oct. 18 court hearing.
The court documents say Volkswagen won't sell any U.S.
diesel vehicles for the 2016 and 2017 model years. The company,
which has been barred from selling all diesel vehicles in the
United States since late 2015, said earlier this month it is
uncertain whether it will ever sell diesel vehicles in the
United States again.
As part of the settlement with VW brand dealers, the company
will continue making some incentive payments to dealers, buy
back diesel vehicles that dealers can't sell and suspend capital
improvements for two years that it wanted dealers to make.
Volkswagen still faces billions of dollars in potential
civil and potential criminal U.S. fines for violating emissions
laws, as well as a potential costly buy-back of 85,000 vehicles
equipped with 3.0 liter diesel engines if it can't convince
regulators that they can be fixed.
VW has admitted it installed improper software that
deactivated pollution controls on more than 11 million diesel
vehicles sold worldwide.
In June, VW agreed buy back 475,0000 U.S. vehicles equipped
with 2.0 liter engines at a cost of up to $10.03 billion. It
also agreed to spend up to $5.3 billion to address claims by
federal regulators and 44 U.S. states.
(Reporting by David Shepardson; Editing by Diane Craft and Mary