VW Effectively Screwed Its US Dealers

2013 Volkswagen Beetle TDI badge (Credit: Volkswagen)

Even though Dieselgate is finally coming to a close as Volkswagen offers to compensate TDI owners and buy back their cars, not everyone’s happy. One group that’s been effectively screwed by VW is the network of United States dealerships. They’re getting nothing out of the whole scandal.

As I pointed out repeatedly since Dieselgate first broke, thanks to data generously provided by Autolist, dealerships were hit the hardest by the falling values of Volkswagen cars. At one point quite a few were considering filing a class action suit against the automaker, but backed out at the last second in favor of seeing what kind of olive branch would be extended.

Instead, they got a slap across the face. The writing was on the wall: VW ditched its old American boss, Michael Horn, the guy who actually stuck up for dealers. That alone should’ve been reason to go ahead with the suit.

A recent Automotive News report highlights some of the rationale behind why dealers didn’t go into court with guns blazing. Basically, they were scared of rocking the boat, while simultaneously believing VW would make things right. Obviously that didn’t happen, so retailers are eating the losses they’ve suffered. In the end, consumers will pay one way or another for this.