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  • Volkswagen Meets With Franchises to Discuss Dealer Compensation Over Scandal

Volkswagen Meets With Franchises to Discuss Dealer Compensation Over Scandal

May 13, 2016
Volkswagen’s German head honchos agreed to discuss its emissions scandal with U.S. dealers, particularly pertaining to the financial damages the company’s franchises are seeking. According to Automotive News, formal negotiations are not yet underway.
Photo 2/4   |   2011 Volkswagen Jetta TDI Front Three Quarter1
The group of U.S. dealers calls itself the dealer investment committee, and it seeks a settlement package from Volkswagen AG, the parent company of Volkswagen Group of America. The details of that settlement aren’t clear, and it’s possible the committee will also seek influence over Volkswagen’s future market strategy in the U.S., in addition to legal fees and cold, hard cash.
In March, hundreds of VW dealers met unofficially to discuss the emissions scandal, which has affected U.S. dealers’ sales of all Volkswagens. That same month, representatives from 12 U.S. dealerships met at Volkswagen AG’s headquarters to lodge concerns over the company’s future.
Photo 3/4   |   2013 Volkswagen Passat TDI Front In Motion
Although tensions have been high recently, one VW dealer says the company is amenable to dealers’ concerns. Speaking to Automotive News, Jason Kuhn said he was optimistic about a reasonable, equanimous solution for both Volkswagen’s dealers and its corporate interests.
According to recent rumors, Volkswagen is very close to finalizing a fix for its U.S.-market diesel engines, which can emit far more nitrogen than is legal thanks to an emissions-control defeat device. Such a fix would be great news for the company, its dealers, and its customers.
Source: Automotive News
Photo 4/4   |   2015 Volkswagen Golf TDI Front End Action Shot2

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