Volkswagen Has Reached a Deal to Compensate U.S. Dealers for Its Emissions Scandal

The deal is in principle and tentative, with details of the settlement fund yet to be reached

Volkswagen Has Reached a Deal to Compensate U.S. Dealers for Its Emissions Scandal
Image: Volkswagen
August 25, 2015

German automaker Volkswagen (VW) has reached a deal—in principle—to compensate its 650 dealers in the U.S. regarding the company's recent diesel emissions scandal.

Reuters reports that the company and a lawyer representing the dealers announced the tentative settlement at a San Francisco court hearing, though the amount of the settlement was not disclosed and not all the details regarding how the fund will be divided between the dealers have been resolved. The parties told U.S. District Judge Charles Breyer that they are planning to file those details by the end of September.

The automaker's dealers in the U.S. have not been allowed to sell diesel vehicles that pollute the environment for almost a year. Meanwhile, VW has been doing a number of things to resolve any lingering problems related to the scandal.

The company has admitted that it installed "improper software that deactivated pollution controls" on more than 11 million of its diesel vehicles sold around the world, says Reuters. It agreed in June to pay up to $15.3 billion in order to re-purchase up to 475,000 of those vehicles as well as to address claims made by federal regulators and 44 states. However, it may be forced to pay billions more in the U.S. if it has to re-purchase 85,000 3.0-liter Audi, Porsche, and VW vehicles sold since 2009.

VW has not yet reached a deal with the U.S. Justice Department and the U.S. Environmental Protection Agency on fines that are part of a separate settlement. This settlement could lead to a third-party monitor to ensure that the company complies with American laws.