The financial losses suffered by VW’s American franchise dealers are said to be covered by the automaker, according to a report from the Wall Street Journal.
The diesel scandal has caused Volkswagen’s franchise dealers significant financial losses because of the cars they cannot sell, while the automaker’s inability to agree sooner on a settlement with the US regulators made the damages increase even more because of a drop in demand. Some of them even decided to file lawsuits, accusing the company of fraud and claiming compensations. However, a solution is under away, the Wall Street Journal reports, citing sources who attended a recent meeting between 150 dealers and VW. Europe’s biggest automaker has started to host such gatherings to inform dealers about how it plans to implement the 15-billion-dollar settlement related to the Dieselgate. According to the newspaper, the agreement over the nearly 500,000 affected vehicles also covers another 12,000 that dealers are unable to sell.
Even if the US regulators have not yet approved a fix for the over-polluting cars, VW gave dealers a detailed timeline of the buyback and repair program, that is said to start from October and run through the end of 2018. As part of the deal struck last month, owners that decide to return the cars will receive a cash payment of at least 5,100 dollars, while some of them may get as much as 10,000 dollars. However, there are still 85,000 3.0-litre SUVs and limousines from Audi, Porsche and VW that have to be mended.