Schwarzenegger sued the car dealership in 2002, alleging that the company and its advertising agency had used his name and photograph in an ad without permission, and claiming damages of $20 million.
The advertising agency, Zimmerman & Partners Advertising, settled with the actor-turned-politician in 2003, while in June this year Schwarzenegger's suit against the Fred Martin Motor Company was dismissed by a California court – on the grounds that the court did not have jurisdiction to hear the case.
The claim has now settled, with the car dealership issuing a written apology to Governor Schwarzenegger for its improper use of his image. In addition the Fred Martin Motor Company has agreed to pay an undisclosed sum of money to Arnold's All-Stars, a charity that Schwarzenegger founded in 1991.
Earlier this month Schwarzenegger settled another publicity rights claim, this time against a small Ohio company that, without permission, produced a bobblehead doll in his image.