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Volkswagen offers $1000 to customers after 'emissions scandal'

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Volkswagen offers $1000 to customers after 'emissions scandal'

Porsche profits have halved as the company says it is "affected by developments at Volkswagen". The company said its Audi luxury brand would offer the same award starting Friday.

The British government has not made the recall mandatory, however, and owners of affected VW Group cars can choose whether to send their vehicles in for the recall or not. Along with today's action, the automaker has offered financial incentives to dealers caught with now-unsalable inventory.

The offer goes to owners of 482,000 cars in the United States, many of whom are angry at the company, because they'd paid extra for the cars to be environmentally sensitive without losing peppy acceleration. The company will then mail out the Goodwill Package within four weeks. Second-generation powerplants may need digital and physical changes as well, but newer, third-generation examples vehicles should be able to get by with a quick software update.

Calling it a "goodwill package", VW hopes this is the first step in regaining the trust of its customers.

The clean diesel engine scandal is estimated to cost owners of the affected cars as much as $5,000 in resale value.

While owners thought VW might throw them money as a way to keep their business, those same owners were leery of small print included in any offer, especially concerning legal matters. 'We are working tirelessly to develop an approved remedy for affected vehicles, ' Volkswagen Group of America president and chief executive Michael Horn said in a statement.

He bought the auto used for $9,000 in 2013 and recently sold if for less than the Kelley Blue Book value, at $6,500. The agency added that the vehicles were equipped with software specifically invented to cheat emission tests. The price of gas-powered VWs dropped two per cent in the same period.

The payment will come in the form a gift card that can be spent anywhere. That includes the diesel versions of the VW Jetta, the Beetle and the Golf from model years 2009 through 2015, the Passat from 2014-2015.

 

Full details on the package and eligibility can be found on the special website www.vwdieselinfo.com that VW has set up for concerned owners in the U.S.

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