Reuters Reports Deal Reached For U.S. Volkswagen Dealer Compensation

Comments:
From Rebecca Lindland, senior analyst for Kelley Blue Book:
“The dealers are VW's front line in this matter, so getting them compensated is critical. Not only do they represent the company to the owners, they're also impacted financially since they're hamstrung on what products they can sell. So this is a very important settlement, and hopefully it will be enough to keep dealers and their employees afloat until this entire matter is resolved.”

From Akshay Anand, analyst for Kelley Blue Book:
“Reaching an agreement with dealers is yet another step in fixing the Dieselgate mess. As time passes, news and buzz about the scandal seems to be waning, which is great for VW. There is still much more to be done, but over time, it seems Volkswagen may be able to move on and get back to focusing on what truly matters – building cars.”

From Matt DeLorenzo, managing editor of Kelley Blue Book’s KBB.com:
“This really has no direct impact on owners of VW diesels, since it’s a compensation plan for the dealers who have been unable to sell 2015 models on the ground. Unless or until there is a fix, the cars that have not been certified by government can’t be sold.”

WASHINGTON, Aug 25, 2016; David Shepardson writing for Reuters In an exclusive report that

Volkswagen AG is expected to announce on Thursday it has reached a deal in principle to compensate its 650 U.S. dealers in connection with the German automaker's diesel emissions scandal, a source briefed on the matter said.

The automaker and lawyers for the VW brand dealers are expected to announce a tentative settlement at a court hearing in San Francisco later Thursday morning. The amount of the settlement fund is not expected to be immediately disclosed, the source said. VW's U.S. dealers have been barred from selling polluting diesel vehicles for nearly a year.

Editing for Reuters by Jeffrey Benkoe