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Volkswagen agrees to settle Dieselgate litigation with its US dealers

Volkswagen agrees to settle Dieselgate litigation with its US dealers

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Volkswagen Wrestles With Diesel Emissions Scandal
Photo by Sean Gallup/Getty Images

Volkswagen has reached an agreement to resolve litigation with its US dealers related to Dieselgate, including both the TDI vehicles and the value of Volkswagen franchises. The settlement includes cash payments and "additional benefits" to dealers, though final details of the settlement — including the total amount of compensation — have yet to be worked out. The final agreement is expected by the end of September and will need to be approved by a judge overseeing the proceedings.

"Our dealers are our partners and we value their ongoing loyalty and passion for the Volkswagen brand," said Heinrich J. Woebcken, CEO of Volkswagen’s North American division, in a statement. "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."

Nearly a year ago, Volkswagen admitted that it had intentionally been evading environmental regulations on diesel vehicle emissions. For dealers, the scandal resulted in significant amounts of tied up capital from unsellable diesel vehicles, as well as losses in business valuation and falling sales. Volkswagen has been working to settle numerous cases worth tens of billions of dollars with both government regulators and business partners.