Volkswagen settles with dealers for $1.2 billion over emissions scandal

Volkswagen's emissions scandal is costing it another $1.2 billion.

The car manufacturer agreed Friday to pay US dealers up to $1.2 billion to compensate them for losses that resulted from the scandal, the Associated Press reported.

Volkswagen cheated emissions regulations on 11 million of its diesel-powered models worldwide. News of the cheated standards broke last September, and since then the manufacturer has faced angry consumers, regulators and, yes, dealers.

Dealers can choose to opt out of this week's settlement and instead pursue their own cases against Volkswagen. A judge still has to approve the final version of the settlement.

The $1.2 billion settlement comes to less than what Volkswagen owes to car owners. The company must spend as much as $10 billion buying back or repairing cars involved in the scandal. Owners stand to be paid $5,000 to $10,000 each, according to the AP.