Volkswagen Dealerships Will Receive Reimbursements for Diesel Stocks

Volkswagen logo 1 photo
Photo: screenshot from Youtube
It seems like Volkswagen of America won’t let its workers and dealerships starve because of its misconduct that was recently unveiled under the generally-accepted ‘dieselgate’ term. Yes, all VW with the 2-liter 4-cylinder diesel engine in question are forbidden from sale but that won’t be a huge issue apparently.
Diesels represented 20 percent of all sales in the US and that means the dealerships and employees will see their income shrink by that much at the very least. The problem is, most customers won’t buy a Vee Dub these days no matter the kind of fuel it uses.

To address some of these issues and alleviate some of the pain caused to its employees by the scandal, Volkswagen decided to offer financial support, according to a document obtained by Automotive News.

Until the problems are fixed, the 650 US dealers of the German brand will get a guaranteed bonus payment of $300 for each new car sold and $600 for each new Passat, over the course of September.

Furthermore, floor plan financing reimbursements for diesel vehicles on dealer lots will be offered since dealerships had plenty of those already. This will cover both new and older TDI models.

To top everything off, guaranteed payouts of 1 percent of the sticker value of each vehicle sold in the third and fourth quarter, under the VW’s customer experience bonus program will be paid.

“In light of recent events, we are committed to taking actions which will stabilize your profitability in the near-term. We understand the pressure these recent events have put your business under and we are committed to providing you support,” Volkswagen USA CEO Michael Horn is quoted as saying in the memo.

All of these incentives sound good but as long as VW doesn’t find a solution to increase sales once again, things could get worse in no time.
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