Volkswagen recently announced its promise to deliver the necessary compensations for all affected VW dealerships across the U.S. amid the company's diesel scandal.
The automotive manufacturer's long-running emission scandals that involve its 2-liter diesel engine-powered vehicles finally reached a conclusion just last month, which cost the company an amount of about $15 billion to pay in damages and restitution, marking the highest class action settlement case in the auto industry.
For those unaware, Volkswagen has been under a lot of negative publicity over the years due to purported defeat devices found in its diesel engines that would circumvent standard U.S. emission tests. As a result, dealers themselves have been inadvertently affected by the scandals as well but were, however, left out of the settlement case concluded last month.
The specifics of the $15 billion payout include all 500,000 affected 2-liter diesel engine owners in the U.S. for either buybacks or fixes; funding for the Environmental Protection Agency (EPA) to recuperate damages caused to the environment; and lastly, future VW projects that research on zero-emissions technology in an effort to produce cleaner and greener cars. Nowhere in the settlement agreement were the dealerships of about 650 units across the U.S. mentioned.
This then led to a disgruntled group of more than 150 dealer attendees during the company's meeting held at the Renaissance Hotel in Newark, New Jersey last Friday. The meeting was reportedly supposed to only outline the company's future plans to implement the agreements of the settlement case — spearheaded by the Volkswagen Group of America senior executive Mark McNabb.
According to reports, the meeting took a slight turn later on, when New Jersey-based Volkswagen franchise co-owner Steve Kalafer interjected and asked about the company's other plans to include its affected dealership owners.
McNabb promptly revealed that there were ongoing discussions within the company to provide reparations for all affected parties, be it consumer- or dealer-related.
"McNabb said the company was working toward a fair settlement and restitution for the dealers," Kalafer explained, adding that it was the first time anything was mentioned by the company regarding restitutions for its franchises.
It remains to be seen, however, how the company plans to provide settlements for the dealer's side, as no clear arrangements nor specifics have been made as of yet. Volkswagen representatives do note that internal discussions are going well, and a working plan should be produced within a month.
Otherwise, dealers may be forced to take legal action as well just how consumers did to force Volkswagen's hand.
"We want to know what restitution Volkswagen is going to give to dealers, because we have not put a gun to their head," notes Kalafer in regards to negotiations made within the company and not on legal ground.
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