In a statement released yesterday, VW said it will make cash payments and provide additional benefits to the dealers to resolve alleged past, current and future claims of losses in franchise value. The automaker didn’t disclose financial details and said it hopes to finalize the settlement by the end of September.
“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, Volkswagen, in a statement. “Our dealers are our partners and we value their ongoing loyalty and passion for the Volkswagen brand.”
The agreement covers 652 dealerships in the US, Industry Week reports.
Late last month attorneys general from New York, Massachusetts and Maryland sued Volkswagen and its affiliates, Audi and Porshe, for selling cars equipped with illegal “defeat devices” to cheat emissions tests and then trying to cover up the scam.
The states’ lawsuits seek hundreds of millions in penalties from VW, in addition to the $14.7 billion VW agreed to pay in two settlements with the federal government announced in June.