Volkswagen on Thursday announced that it has reached an “agreement in principle” with dealers that have been affected by the emissions cheating scandal. That scandal involved some of the TDIs being equipped with software that detects when the vehicle is being tested and then changes its performance to produce better emission results.
Already, Volkswagen has settled with car owners affected by giving them at least $5,100 if they’ve owned the car prior to last September. Customers who still have vehicles that are affected have the choice of having their vehicle repaired or bought back.
The recent settlement affects about 650 dealers in the U.S. Volkswagen hasn’t released any monetary figure for the settlement. The agreement is still under discussion and is expected to be finalized at 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. 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.”
The attorney representing the dealers said in a statement that the agreement will enable dealers to move forward and conduct business.
“Our clients recognized the best solution would be one that not only allows them to recoup lost franchise value and continue to employ thousands of American workers, but one that also charts a strong course for the recovery of the Volkswagen brand in the United States,” said Steve Berman, managing partner of the dealers’ counsel Hagens Berman. “Now that there is a path forward for dealers, they can continue to work proactively to take great care of their customers, who are also VW customers.”
Check out this related TFLcar video where we take a VW Jetta TDI to the dyno to see how much power it loses in cheat mode: