VW Agrees To Emissions Settlement With U.S. Dealerships

Volkswagen plans to make cash payments to its U.S. dealerships as part of a settlement that aims to resolve losses suffered in the wake of the automaker's diesel emissions scandal.

The embattled German automaker on Thursday announced the tentative agreement, which would also include "additional benefits" provided to approximately 650 dealerships.

Further details remained under discussion and were not disclosed. A final agreement is due next month and requires a federal judge to sign off on the plan, according to the Associated Press.

“We believe this agreement in principle with Volkswagen dealers is a very important step in our commitment to making things right for all our stakeholders in the United States,” VW North American chief Hinrich Woebcken said in statement.

U.S. sales of Volkswagens plummeted late last year and early this year after the EPA outlined systemic violations of federal environmental laws in more than a half-million diesel vehicles.

Attorneys for the dealers called the proposed settlement a "path forward."

"Our clients recognized the best solution would be one that not only allows them to recoup lost franchise value and continue to employ thousands of American workers, but one that also charts a strong course for the recovery of the Volkswagen brand in the United States," attorney Steve Berman said in the VW release.

Volkswagen previously reached a $14.7 billion settlement with prosecutors and consumers, $10 billion of which would be used to either buy back or repair 2.0-liter VW vehicles affected by the scandal.

The automaker and prosecutors are still negotiating how to resolve a smaller number of 3.0-liter vehicles. The company also continues to face criminal probes in the U.S., Germany and other countries.