Who's next in line for Volkswagen compensation? Dealers

The company has reached an agreement in principle to compensate its US dealers for its diesel misdeeds.

Andrew Krok Reviews Editor / Cars
Cars are Andrew's jam, as is strawberry. After spending years as a regular ol' car fanatic, he started working his way through the echelons of the automotive industry, starting out as social-media director of a small European-focused garage outside of Chicago. From there, he moved to the editorial side, penning several written features in Total 911 Magazine before becoming a full-time auto writer, first for a local Chicago outlet and then for CNET Cars.
Andrew Krok
2 min read
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Volkswagen's decision to cheat on diesel emissions really screwed the company over. But it did more than affect bottom lines and public opinion -- it also messed with VW's dealers, many of which have been the first point of contact for peeved owners. Thankfully, the company is coming up with some plans to compensate its dealer network.

The automaker has reached an agreement in principle regarding dealer compensation, Reuters reports. An agreement in principle is basically a stepping-stone to a proper contract. This would cover all 650 VW dealers in the US, and while the dollar amount has not been divulged, a source told Reuters that it will be in the area of $1.2 billion.

The settlement will allegedly include a buyback scheme similar to the one outlined in its $15 billion settlement with consumers. This means Volkswagen would offer to buy back used diesel vehicles on dealer lots with the same terms given to consumers. The settlement should also include cash payouts and other benefits.

So, what's next? Well, Volkswagen's settlement still needs to be approved by the courts. Both VW and its dealer network told the judge overseeing this whole mess that additional settlement details will be made available by the end of next month. Reuters reports that VW will still need to figure out how to split its compensation between all its dealers, as well.

This isn't the last nail in the coffin for Dieselgate, though. Volkswagen must still propose a solution for the 80,000 or so 3.0-liter diesels that contain unreported software. These engines are typically found in large luxury cars, so any buyback scheme would be quite expensive. If it plans to fix the 3.0-liter diesels, it must submit a remedy by late October.

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