VW to pay US suppliers US$1.2b over Dieselgate

San Francisco

GERMAN car giant Volkswagen has agreed to pay US suppliers some US$1.2 billion to settle claims emanating from the "Dieselgate" pollution scandal, the firm and suppliers said on Friday.

Volkswagen issued a statement saying that it had reached an agreement in principle with VW-branded suppliers after more than a month finalising the accord. "Under the proposed agreement, Volkswagen has agreed to make a maximum total of US$1.208 billion in cash payments to eligible dealers and to provide additional benefits to resolve alleged past, current and future claims of losses in franchise value," the statement read.