VW says it has inked an “agreement in principle” for US dealer Dieselgate compensation image

The German automaker has announced an initial handshake with the US dealers over the compensation they should receive due to the Dieselgate scandal, though the exact terms will be unveiled in September.

Volkswagen Group of America has reached an “agreement in principle” with its dealer network about compensating them over the diesel emissions scandal. There are no specific terms detailed as of yet, but the company announced it has decided to “make cash payments” and also offer other perks to dealers who lost money during the scandal. Back in April a group of Volkswagen dealers filed a court case against the automaker and then in July dealers reported a VW manager talked about “fair restitution” for the losses they incurred.

VW dealers were prohibited from selling some TDI models they had on stock as the company used an illegal “cheat” device that was specifically tasked to evade EPA emissions testing – and the huge backlash against the company might have also persuaded possible shoppers to look at the competition. The agreement is not finalized yet and the exact specifics will only be revealed if the U.S. District Court for the Northern District of California approves it. “We believe this agreement in principle with Volkswagen dealers is a very important step in our commitment to making things right for all our stakeholders in the United States,” commented Hinrich J. Woebckn, chairman of Volkswagen Group of America.