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STATEMENT BY VOLKSWAGEN GROUP OF AMERICA

Sep 30, 2016

VOLKSWAGEN RESOLVES CLAIMS OF VW-BRANDED FRANCHISE DEALERS IN THE UNITED STATES

Herndon, VA – September 30, 2016

Volkswagen Group of America, Inc. (“Volkswagen”) today announced that it has finalized an agreement to resolve the claims of VW-branded franchise dealers in the United States relating to TDI vehicles and other matters asserted concerning the value of the franchise.

Under the proposed agreement, Volkswagen has agreed to make a maximum total of $1.208 billion in cash payments to eligible dealers and to provide additional benefits to resolve alleged past, current and future claims of losses in franchise value. The parties announced an agreement in principle on August 25.

The proposed agreement was filed today by the dealers’ counsel with the United States District Court for the Northern District of California and is subject to the approval of Judge Charles R. Breyer, who presides over the federal Multi-District Litigation (MDL) proceedings related to the diesel matter.

By its terms, the agreement is not intended to apply to or affect Volkswagen’s obligations under the laws or regulations of any jurisdiction outside the United States, where the legal and factual circumstances relating to TDI vehicles differ.

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