Volkswagen Group of America Inc. today announced it has reached an agreement in principle to resolve the claims of VW-branded franchise dealers in the United States relating to vehicles affected by the diesel matter.
Volkswagen has agreed to make cash payments and provide additional benefits to the dealers to resolve alleged past, current and future claims of losses in franchise value. Volkswagen and the dealers' counsel will now work to finalize details of the proposed settlement, including how to apportion payments to dealers in the appropriate manner.
Details of the agreement in principle are still under discussion and are expected to be finalized at the end of September. Any proposed agreement will become effective only after approval by the court, and the parties have agreed to keep further terms confidential as they work to finalize the agreement.
"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," said Hinrich J. Woebcken, CEO of the North American Region for Volkswagen. "Our dealers are our partners and we value their ongoing loyalty and passion for the Volkswagen brand. This agreement, when finalized, will strengthen the foundation for our future together and further emphasize our commitment both to our partners and the U.S. market."