US Dealers Want VW to Pay Them to Cover Dieselgate Losses

US Dealers Want VW to Pay Them to Cover Dieselgate Losses

Volkswagen dealerships in the U.S. are seeking reparations for financial damages as a result of the massive dieselgate scandal.

Three dealers proposed the reparations during a meeting with senior executives in Germany last week. According to Alan Brown, chairman of Volkswagen’s U.S. dealer council, it is still too early to discuss the size of any settlement since the proposal has just been pitched. Company executives at the meeting, which included global brand chief Herbert Diess and its new North America chief Hinrich Woebcken, did not commit to any reparations.

SEE ALSO: Volkswagen Sued for $3.7B in Germany Over Dieselgate Scandal

The topic will be brought back up at the automaker’s meeting next week at the National Automobile Dealers Association convention in Las Vegas. Both Diess and Woebcken plan to attend the meeting, said Brown.

The German automaker has about 650 dealers in the U.S. and Volkswagen of America has been sending dealers “discretionary” payments for the last six months in addition to other financial programs as support. The company currently has a freeze on new diesel deliveries, which previously accounted for about 20 percent of dealership volume.

Discuss this story on our Volkswagen Forum