A few months ago, we wrote a blog post about the Volkswagen emissions scandal to let you know what to do if you own one of the VW models that were impacted. Months later, we’d like to let you know what’s happening with this case - and what you can expect from VW if you do own a car that was part of this scandal.
Customer Goodwill Packages
As part of making amends with its customers, Volkswagen has started something called the ‘Customer Goodwill Package.’ Essentially, the company will give $1000 cash to VW TDI owners if the automobiles owned were part of the VW scandal. These payments will come in the form of one $500 Visa gift card that can be spent anywhere and one $500 cash payment that can only be used at VW dealerships.
In addition, the TDI owners impacted will receive free roadside assistance for three years. Roughly 480,000 VW owners will receive this payment. Porsche, Audi, and TDI owners that had a delivery of these cars after November 8, 2015, will not receive the aforementioned payment. In addition, current VW owners can receive a $2000 cash payment that can be used at a VW dealership.
The Dealership Side
VW is also making amends with dealerships that lost money during the emissions scandal. Dealers now have ‘discretionary’ cash that they can use to make excellent deals with consumers. In addition, dealers are getting larger compensation amounts from VW when certain VW models are sold.
Further, VW might buy back more than 100,000 cars as part of the emissions scandal settlement. However, the terms of the buy-back agreement or whether or not the buyback agreement will happen is unknown.
So far, none of the hundreds of lawsuits filed have been settled or brought before courts, but this is expected to happen within the next year. It’s hard to determine whether or not a $500 gift card is enough for someone that purchased a VW based on resale value and now has lost that value. Whether or not this compensation plan is enough will be determined by a jury in the end.
Fixing the Problem
VW hasn’t yet said how it plans on fixing the emissions issue. TDI models are manufactured and purchased because they were believed to be low on the emissions scale while also being capable of excellent performance. There are many unanswered questions in this ongoing saga. We will keep you updated on it.
Should VW change either of these things, TDI owners might not be so quick to have their cars fixed in the case of a recall - but that’s purely speculation for the time being. How VW plans to technically fix the problematic models remains to be seen. Stay tuned to this blog for any additional news related to the VW scandal.