Dealers in United States will receive on average about $1.85 million.

In the latest episode of the never-ending Dieselgate saga, U.S. District Judge Charles Breyer has revealed VW’s U.S. dealers will receive a total of $1.2 billion in the aftermath of the diesel emissions scandal. He went on to describe the settlement as being “fair, reasonable, and adequate,” adding that all 650 dealers are going to be paid over the course of 18 months. On average, dealers are going to receive approximately $1.85 million.

Volkswagen reached an agreement with representatives of its U.S. dealer network back in October 2016, and now the deal has the stamp of approval from a judge. As part of the understanding between the two parties, VW will continue to give incentive payments to dealers depending on volume. In addition, all 650 dealers will be given the possibility to postpone capital investments for the next two years.

According to law firm Hagens Berman, the entire settlement is actually valued at more than $1.6 billion by taking into account the $175 million representing continued sales incentives as well as $270 million for a provision for prior payments.

In total, VW has to spend as much as $22 billion to settle the dispute in United States related to the cheating TDI engines.

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The peeps from Wolfsburg were on the verge of teaming up with Daimler in 2005 to borrow their diesel engines, but in the end decided not to go through with the deal. Shortly after that, VW came up with the idea to mess around with its TDIs to make them seem more efficient and less harmful to the environment during testing, but not in real world driving.

Former VW CEO, Martin Winterkorn, revealed recently he had no idea about what was going on at that moment and only found out about the diesel cheat in August 2015. “Furious” about what happened, Winterkorn is currently under criminal investigation for fraud.

Source: Reuters