As Crisis Grows Dealers Concerned That Compensation From VW May Not Be Enough

As Crisis Grows Dealers Concerned That Compensation From VW May Not Be Enough

Volkswagen's U.S. dealerships are suddenly awash in cash. But they aren't sure it will be enough.

A package of special programs to help retailers cope with the diesel emissions scandal has infused large sums of money -- in the form of incentives, sales bonuses and floorplan subsidies -- into a dealership network that's struggling with sluggish sales, thin profits and, now, a stop-sale order on diesel vehicles, which have typically accounted for more than 20 percent of sales.


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jameswisrikjameswisrik - 10/12/2015 10:19:17 AM
+1 Boost
VW cheated their customers, the environment, and govt's. Cheating the VW dealerships won't be a problem!


PUGPROUDPUGPROUD - 10/12/2015 10:33:07 AM
+3 Boost
How do you think these dealers will treat residual values on trade-ins when a customer wants to get out of a defective cars? Right! Screw the customer will be there approach so how sorry can we feel for them.


TheSteveTheSteve - 10/12/2015 10:42:35 AM
+1 Boost
Worrying is 100% useless. You start feeling crappy now for fear of what may come, and you don't influence the outcome one idota. Cross the bridge when you come to it. In the interim, do what you can, if anything.


jameswisrikjameswisrik - 10/13/2015 8:40:36 AM
+1 Boost
don't worry be happy....don't plan be happy...

if there is a problem ...cheat.

This is VW new slogan!


Dr550Dr550 - 10/12/2015 2:45:24 PM
+3 Boost
VW upcoming SUV's better be home runs from the start. No gauging on add-ons, no recalls, great fit and finish, etc. They need these SUV's ASAP.


carsnyccarsnyc - 10/12/2015 11:12:51 PM
+1 Boost
Not only a new SUV. Jetta and Passat need replacements yesterday


knowitall1985knowitall1985 - 10/12/2015 4:22:37 PM
+2 Boost
I would hate to own a VW store right now.....


MDarringerMDarringer - 10/13/2015 9:27:16 AM
+1 Boost
Prior to this, VW was very predatory toward dealers. They would set a sales goal for a dealer and if the dealer made the goal, a very nice bonus occurred, BUT the dealer had to gamble out of pocket up front and if the goal was not met, you lost money. There is a reason VW is usually marketed in VW/Porsche/Audi dealers. Now with VW and Audi tarnished by dieselgate, I predict VW will prop up key dealers and let the rest wither and die.

I now wonder if VW will go through with building the Tarshunda--or whatever they are calling the CrossBlue in production form--in Chattanooga.


I honestly think this could topple VW in the USA. Their products are from from class leading or compelling in any way and now they are built by a company that is OK will crinking out gross polluters to make money.


TomMTomM - 10/13/2015 9:33:57 PM
+1 Boost
I still believe that VW will have to - even if only in the USA - declare reorganization bankruptcy in order to come out from under the lawsuits in the USA. I would project LOTS of different lawsuits - from owners - from dealers - (Especially ones who recently lost the franchise) - from Green groups - from States - and the USA. And remember - there will be a lot of the same in other countries where the software was used.

However - VW is not much of a seller in the USA - and it appears that most people do not associate Audi - with VW. (Hard to believe- but few people know much about VW here in the USA. IT will not affect Diesel sales in Europe because of the price advantage of diesel fuel there - where over 50% of sales are still diesel. People who buy VW here are not impulse buyers - are generally well educated - and are the least likely to abandon the brand once a new series of Diesels comes from VW
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