Volkswagen Settles With Dealers Over Emissions Scandal

Volkswagen and 650 of its dealers announced Thursday that they have agreed to settle a court case filed by dealers seeking compensation for losses caused by the carmaker’s diesel-emissions scandal.

The auto manufacturer said in a statement that it “has agreed to make cash payments and provide additional benefits to the dealers to resolve alleged past, current and future claims of losses in franchise value.” But the full amount of the settlement was not disclosed. Volkswagen said it plans to finalize the deal by September.

The case stems from the manufacturer’s 2015 admission that 11 million Volkswagen “clean diesel” vehicles worldwide had software designed to get around emissions tests. American VW dealers are prohibited by U.S. regulators from selling the cars, a ban that has lasted almost a year.

As a result, the dealers filed suit against VW, seeking to recover lost revenue.

“We believe this agreement in principle with Volkswagen dealers is a very important step in our commitment to making things right for all our stakeholders in the United States,” said Hinrich J. Woebcken, chief executive of the North American Region at Volkswagen.

Volkswagen agreed to pay $14.7 billion in penalties in an agreement with the U.S. Justice Department in June. It’s the largest payout by an automaker to consumers in U.S. history. A criminal investigation into the “diesel-gate” scandal is ongoing.