Volkswagen settles dispute with dealers in emissions scandal

Volkswagen will compensate dealers who have been unable to sell the company’s diesel vehicles in the wake of an emissions testing scandal. 

VW announced the deal after a court hearing on Thursday, Reuters reports. The deal means the automaker will pay 650 dealers in the United States to make up for their losses amid a federal probe into emissions testing cheating. 

{mosads}The settlement will have VW repurchase diesel vehicles that cannot be repaired for the same price at which it will purchase similar vehicles from consumers. 

The deal “heal the wounds between Volkswagen and the dealers,” a lawyer for the dealers said at the hearing. 

“Like consumers, [dealers] have been financially hurt here. … They have cars on their lots they can’t sell, their franchise value has gone done and they’ve invested millions in these Volkswagen franchises.”

VW has previously agreed to buy back 475,000 vehicles with 2-liter diesel engines from consumers, a plan that will cost the company more than $10 billion. The cars are equipped with software that turned off emissions controls unless the vehicle is undergoing emissions testing from regulators. 

A federal judge on Thursday ordered VW and federal officials to put together a settlement for the 85,000 3-liter diesel vehicles that are also equipped with the so-called “defeat devices.” A settlement covering those vehicles is due in late October.