Volkswagen pacifying angry US customers with gifts

By Money Times

Nov 11, 2015 08:52 PM EST

German automobile giant Volkswagen is changing gears to lead the organization on damage control path to appease its angry customers. The image of Volkswagen has severely been damaged on the fallout of its attempt to cheat customers and the US government over emission standards.

Volkswagen is offering $1,000 credit to appease the angry US customers. Moreover, Volkswagen has also announced three-year free roadside assistance service to its customers. Volkswagen has decided to keep discussing on potential remedies with US and California emission regulators.

Volkswagen is also considering to buy back some of the cars from the US customers. The $1,000 credit offer to US customers, who bought certain diesel models that don't adhere with the US emission standards, is to be paid in two forms.

Half of $1,000 would be spent at Volkswagen and Audi dealership outlets. The emission results rigging scandal has resulted in a loss of confidence among the US customers. 

All the 500,000 owners of Volkswagen and Audi models, which have been equipped with 2.0 liter TDI diesel engines, are eligible for the latest offer of $1,000 gift voucher.

The gift voucher is paid through $500 prepaid Visa card and $500 through dealership card. In addition to this, Volkswagen is also offering free roadside assistance service for three years.

Analysts are watching the latest move as to how far it will deliver goodwill results for Volkswagen. The offer is to mollify the US customers, who bought the 2-liter diesel-powered Volkswagen cars and the German automaker has promised to work on affected vehicles. 

According to the US Environmental Protection Agency, Volkswagen diesel vehicles emit 10 to 40 times more than the allowed amount of harmful nitrogen oxide, while being driven.

Volkswagen US chief executive said that the company was working tirelessly on developing an approved remedy for affected vehicles. 

Volkswagen announced the gift package to the US customers on Monday on its web page titled 'We're Working to Make Things Right.'

The Environmental Protection Agency (EPA) in September announced that select Volkswagen's diesel cars have been programmed to rig the numbers in emission tests. 

About 500,000 Volkswagen vehicles with 2-liter and 4-liter cylinder diesel engines sold in the US market are falling below the US emission standards.

Volkswagen said that 11 million cars equipped with defective software have been sold globally. About 200 lawsuits have been filed against Volkswagen since the emission scandal broke.

The US customers are angry and feel cheated at the hands of Volkswagen. The latest move of the German automaker is to pacify its customers, who have been frustrated with the way they were cheated on emission standards. 

The US customers are considering the latest move of Volkswagen a positive one, but not sufficient for damage control. Jeff Slagle, a diesel Golf owner in Wilton, Connecticut, said: "I guess it's a very small step in the right direction. But, far from what I'd like to see in terms of being compensated." 

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