Volkswagen to Compensate Dealerships for Lost Value
Posted on Tuesday, August 30th, 2016
Volkswagen dealerships have been going through a difficult year.
Before the emissions scandal broke out last year, Volkswagen dealerships were growing at a frantic pace. However, since the company admitted to using a device to cheat Federal emissions standards, the value of these dealerships has plummeted. Their inventory cannot be sold as it is, and as a result these dealerships have lost a great deal of their value. Some are worth barely more than the land on which they sit.
To help dealerships survive this engineered disaster, Volkswagen has announced an agreement to pay back dealerships for some of their lost value. Sources say the agreement can amount to as much as $1.2 billion, split among the company’s 650 U.S. dealerships. This amounts to an average of $1.85 million for each dealer, depending on size and inventory. This amount is in addition to the $10 billion the auto manufacturer plans to pay customers whose diesel vehicles were equipped with the emissions defeat device.
Defective products hurt people and the environment every day. If you’ve been injured or otherwise adversely affected by a product defect, call Pohl & Berk, LLP, at 615-277-2765 to speak with an attorney about your situation.