It shouldn’t come as any real surprise that consumer trust in Volkswagen is on the very low side, but the automaker has taken a bigger hit than most would assume. A recent Auto Pacific poll shows that only one out of every four consumers has a good or trustworthy impression of VW - this is in stark contrast to the three out of every four consumers that trusted VW prior to the emissions scandal.
While the fact that VW is no longer a trusted brand might not be shocking, what may surprise some is that sales of VW automobiles have dropped - but not just sales of diesel VWs. Overall, sales of Volkswagen's (across the board) have come to a standstill leaving VW dealerships holding a vast amount of inventory. One way that the automobile maker is trying to boost sales is by offering customer loyalty discounts.
Discounts Are Fine - For Now
In order to help dealerships cope with the new losses, VW has put out a $2000 customer loyalty incentive. Current VW customers can purchase a new VW and get an immediate $2000 discount, which can be combined with any other dealership offers. Since many dealerships are already offering deep discounts, the additional $2000 deal will allow many to drive away with an affordable new VW. But is this enough to bring consumers back to the brand?
The problem with the new loyalty incentive is that VW only has so much money to spend repairing its current reputation. In addition to this deal, the automaker also has to repair the cars that were a part of the emissions scandal, and provide VW dealers with some kind of compensation. Eventually, the car company might run out of funds to spread across the board, and this will make it even tougher to rebuild VW’s reputation.
Getting Consumers Back
There are a lot of problems with the way that VW rigged emissions data. Car owners have lost a good deal of value when it comes to resale, diesel owners have already paid too much for a car that does not live up to the data once released by VW, and dealership owners are left with inventory that they can’t sell. So while VW is trying to help out dealership owners and bring consumers back to the brand, it may all be too little to repair the damage that has already been done.
The bottom line here is that both consumers and car dealership owners deserve to be compensated for current and long-term losses. VW owners will not gain as much as originally anticipated when it comes to selling a used VW diesel, and VW dealership owners are reliant on whether or not the carmaker can repair its reputation before running out of money. Both situations are bleak.
If you have been impacted by the VW emissions scandal in any way, take the time to contact the Dellutri Law Group. We will help you get the compensation that you deserve in the wake of this scandal while keeping your individual situation in mind. Call us today at (800) 391-4337 or schedule online.