We are pleased to report that the VW franchised dealer settlement of diesel-gate claims against Volkswagen of America and Volkswagen, A.G. is set to receive final approval by the Court on January 18, 2017. BSM partner, Richard Sox, along with attorneys from Hagens Berman, et al., negotiated a robust settlement on behalf of the 652 eligible VW dealers.
The settlement includes cash payments totaling $1.2 billion to eligible dealers along with continued payment for 12 months of the maximum VIP sales and CSI incentives payments, regardless of actual performance, totaling approximately $600 per vehicle sold. The settlement also prevents VW from requiring dealers to make any facility upgrades for 24 months. Dealers will receive the same compensation for each used, unfixable VW vehicle in dealers’ inventory as was agreed in the Consumer Class settlement which results in payment of several thousand dollars above the value of the vehicle. Dealers will receive payment of net wholesale cost of new, unfixable VW vehicles in dealers’ inventory.
Additional good news for VW dealers is that the class action claims against Robert Bosch GmbH and Robert Bosch, LLC were not included in the VW settlement. BSM and Hagens Berman believe that additional monies will be paid to dealers as result of those claims.