VW said to promise dealers 'restitution' for diesel fiasco

Hundreds of franchise dealers are expected to receive compensation for the sales halt.

Volkswagen has finally promised compensation for US dealers affected by the diesel emissions scandal, according to reports.

The German automaker is said to have convened a gathering of more than 150 dealers last week in Newark, New Jersey, to outline details of the $15 billion settlement and plans for the buyback and repair program, attendees told The Wall Street Journal.

Dealers have expected compensation for lost revenue as some models sit in inventory until a fix can be implemented, however VW appears to have remained quiet on the subject until now.

Details of the 'restitution' program remain unclear as both sides reportedly push forward with negotiations. Approximately a half million vehicles were affected in the US market, though only a fraction were on dealers' new and used lots.

The latest report suggests VW's buyback program will kick off in October, when a software fix for newer models will roll out. Some older vehicles will require hardware modifications, expected to be ready by February, while the last of the repair campaigns is said to be slated for October 2017.