Volkswagen to Compensate Dealers Affected By Emissions Scandal
The settlement amount has not yet been disclosed.
— -- Volkswagen has reached a "deal in principle" to compensate 652 VW brand dealers affected by its diesel emissions scandal, the company announced today.
The settlement amount has not yet been disclosed, but will involve cash payments to "resolve alleged past, current, and future claims of losses in franchise value," the automaker said in a statement.
Volkswagen -- which has admitted to installing "defeat devices" designed to circumvent EPA emissions standards in nearly 500,000 diesel vehicles in the U.S. -- earlier this year agreed to a nearly $15 billion deal to resolve claims it mislead regulators.
That deal included over $10 billion to buy back or repair affected vehicles and compensate consumers, $2.7 billion for environmental remediation and $2 billion to promote zero-emissions products.
At the time, dealers complained their woes were not addressed in that settlement. Today’s settlement involves a separate class action.