Consumer Law

Volkswagen makes $1K no-strings offer to diesel vehicle owners in emissions scandal

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Beset by a barrage of litigation over software that turns on emission controls in diesel vehicles only when they are about to be tested, Volkswagen has announced a no-strings compensation offer for some 482,000 owners of such Volkswagen and Audi vehicles in the U.S.

They will receive a $500 gift card, which can be used anywhere, and a $500 voucher for vehicle work and purchases at Volkswagen dealerships, the Associated Press reports. A spokeswoman said there are no strings attached to the offer, which does not require owners to give up any litigation or arbitration rights.

Meanwhile, as a recall continues, it isn’t clear what fix will be proposed to deal with vehicle emissions that can grossly exceed EPA standards.

“We are working tirelessly to develop an approved remedy for affected vehicles,” said Michael Horn, who serves as chief executive of VW operations in the U.S., in a written statement. “In the meantime we are providing this goodwill package as a first step towards regaining our customers’ trust.”

Combined with a prior offer of $2,000 toward the purchase of another Volkswagen vehicle, the new compensation could be used to take $3,000 off the price, the AP notes.

“The problem that most of us suffer from is we’re in never-never land, so this at least gives us some compensation until they figure it out,” said Bob Rand. He is a retired judge and lives in Pasadena, California.

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