VW Dealer Compensation Plan Coming in the Next 30 Days

From the moment that the diesel scandal broke, relations between Volkswagen Group of America and their dealer network have been fraught. With a plan to compensate dealers who have been damaged by the emissions scandal in the cars, that relationship could be on the mend, reports the Wall Street Journal.

Talks to address dealer grievances “are ongoing and progressing very well,” says Alan Brown, Chairman of the Volkswagen National Dealer Advisory Council.

Brown’s comments come after a three hour meeting that was held on Friday in Newark, NJ. Although the meeting had been convened to discuss the buyback program, it was quickly interrupted by dealers concerned about compensation.

Steve Kalafer, a New Jersey dealer, tells the Wall Street Journal that Mark McNabb, a senior executive from VGoA, “said the company was working toward a fair settlement and restitution for the dealers. He used the word restitution for the dealers for the first time.”

Another dealer who attended the meeting told the WSJ that McNabb said he was hoping for a 30 day timeline for further details.

Despite the good news, dealers are still skeptical. “Volkswagen’s compensation for consumers is very generous,” says Kalafer, “but it was done with a gun to their head.” We want to know what restitution Volkswagen is going to give to dealers, because we have not put a gun to their head.”

Dealers were particularly upset about the emissions scandal, because of heavy investments that they made to prepare for a US-centric products offensive that Volkswagen was planning. With the scandal, though, the plans were derailed.

US dealers were further frustrated when Volkswagen of North America CEO Michael Horn left the company. Horn had been a champion for the dealers and there were serious questions about how the dealers would fare after his departure.

The news coming out of this New Jersey meeting is good, though, with dealers reportedly feeling good, with Alan Brown saying “Personally, I feel more bullish about VW and our future than ever before.”

[source]

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