Volkswagen and VW-branded franchise dealers in the U.S.A reach an agreement
27 Aug 2016|1,149 views
Volkswagen Group of America today announced it has reached an agreement in principle to resolve the claims of VW-branded franchise dealers in the U.S.A relating to Turbocharged Direct Injection vehicles affected by the diesel matter and other matters asserted concerning the value of the franchise.
Volkswagen 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. Volkswagen and the dealers' counsel will now work to finalise details of the proposed settlement, including how to apportion payments to dealers in the appropriate manner.
Details of the agreement in principle are still under discussion and are expected to be finalised at the end of September. Any proposed agreement will become effective only after approval by the Court, and the parties have agreed to keep further terms confidential as they work to finalise the agreement. Under the agreement, Volkswagen will consent to the certification - for settlement purposes only - of a class of VW-branded franchise dealers in the U.S.A as of an agreed date.
"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 U.S.A," said Hinrich J. Woebcken, CEO of the North American Region, Volkswagen. "Our dealers are our partners and we value their ongoing loyalty and passion for the Volkswagen brand. This agreement, when finalised, will strengthen the foundation for our future together and further emphasise our commitment both to our partners and the U.S.A market."
Steve Berman, Managing Partner of the dealers' counsel Hagens Berman, said, "Our clients recognised the best solution would be one that not only allows them to recoup lost franchise value and continue to employ thousands of American workers, but one that also charts a strong course for the recovery of the Volkswagen brand in the U.S.A." Berman added, "Now that there is a path forward for dealers, they can continue to work pro-actively to take great care of their customers, who are also VW customers."
The plaintiffs filed the initial complaint against Volkswagen on 6th April 2016, in the U.S. District Court for the Northern District of Illinois. The litigation was subsequently transferred to the multi-district proceedings in the U.S. District Court for the Northern District of California.
Volkswagen Group of America today announced it has reached an agreement in principle to resolve the claims of VW-branded franchise dealers in the U.S.A relating to Turbocharged Direct Injection vehicles affected by the diesel matter and other matters asserted concerning the value of the franchise.
Volkswagen 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. Volkswagen and the dealers' counsel will now work to finalise details of the proposed settlement, including how to apportion payments to dealers in the appropriate manner.
Details of the agreement in principle are still under discussion and are expected to be finalised at the end of September. Any proposed agreement will become effective only after approval by the Court, and the parties have agreed to keep further terms confidential as they work to finalise the agreement. Under the agreement, Volkswagen will consent to the certification - for settlement purposes only - of a class of VW-branded franchise dealers in the U.S.A as of an agreed date.
"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 U.S.A," said Hinrich J. Woebcken, CEO of the North American Region, Volkswagen. "Our dealers are our partners and we value their ongoing loyalty and passion for the Volkswagen brand. This agreement, when finalised, will strengthen the foundation for our future together and further emphasise our commitment both to our partners and the U.S.A market."
Steve Berman, Managing Partner of the dealers' counsel Hagens Berman, said, "Our clients recognised the best solution would be one that not only allows them to recoup lost franchise value and continue to employ thousands of American workers, but one that also charts a strong course for the recovery of the Volkswagen brand in the U.S.A." Berman added, "Now that there is a path forward for dealers, they can continue to work pro-actively to take great care of their customers, who are also VW customers."
The plaintiffs filed the initial complaint against Volkswagen on 6th April 2016, in the U.S. District Court for the Northern District of Illinois. The litigation was subsequently transferred to the multi-district proceedings in the U.S. District Court for the Northern District of California.
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