VW Will Make Things Right With Dealers

Volkswagen badge (Credit: Volkswagen)

It’s great to see Volkswagen finally coming up with a plan to fix the Dieselgate scandal, after months of denial and subterfuge. One part of the equation that wasn’t looking so good was making things right with dealers, who have suffered big time.

Per a recent Automotive News report, it sounds like the ball is rolling on finding a solution to make VW dealers happy. Everything’s in the negotiation stage, so it’s too early to pat Volkswagen on the back. Dealers were pretty upset when Michael Horn, CEO of Volkswagen Group of America, suddenly left the company. He was their undying advocate and the dealers understandably felt betrayed.

This news of negotiations comes after hundreds of VW dealers in the US banded together and demanded a relief package from the automaker. That’s at the center of the informal discussions going on now.

Automotive News speculates a few things are being thrown around. One, dealers want more control over the company’s market strategy in the US. VW’s moves in this market have been questionable for some time, and admittedly executives seem to not get the unique tastes and preferences of American consumers. Also, it’s likely VW will ask the dealers to not pursue any legal action from Dieselgate.

The meeting with dealers is critical for VW. Quite a few have been talking with attorneys about options, including some that have had a class action suit drafted but not filed, yet. If things don’t go well in negotiations, it could get ugly.