Volkswagen pledged to compensate franchise dealerships affected by the automaker’s diesel emission scandal, dealers announced Friday after meeting with company officials.
Volkswagen executives made the promise during a three-hour meeting with 150 dealers from the Northeast region at the Renaissance Hotel in Newark, N.J. The talks mark the first time VW has publicly promised its franchise dealerships full compensation for the 475,000 vehicles tainted with cheat devices.
The deal comes in response to VW’s admission in September to installing so-called defeat devices in hundreds of thousands of diesel-powered vehicles in the U.S.
Executives at the meeting discussed how the German automaker plans to implement the $15 billion settlement, which represents the largest automotive settlement in history. The company also explained that owners will be able to sell back or fix the problematic vehicles starting in October once the settlement is approved.
Regardless of the customer’s decision, they will receive a payment of $5,100 to $10,000, the source told reporters, asking not to be identified until the plan is publicly approved Tuesday.
The settlement, according to the source, also includes $2.7 billion for environmental mitigation and another $2 billion for research for renewable technology.