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Volkswagen offers $1,000 gift cards toward car emissions repairs in US Volkswagen offers $1,000 gift cards as 'goodwill package' to US owners
(35 minutes later)
After months of apologies Volkswagen has a solution come up with another way to appease angry US motorists caught up in its emissions scandal: gift cards. After months of apologies, Volkswagen has a solution to appease angry US motorists caught up in its emissions scandal: gift cards.
Under the headline “We’re Working to Make Things Right”, Volkswagen on Monday launched a webpage where VW owners can enter their vehicle identification numbers and learn whether or not they qualify to receive up to $1,000 to compensate them for their unwitting role in one of the worst car scandals in history. Under the headline “We’re Working to Make Things Right”, Volkswagen on Monday launched a webpage where VW owners can enter their vehicle identification numbers and learn whether they qualify to receive up to $1,000 to compensate them for their unwitting role in one of the worst car scandals in history.
The Environmental Protection Agency (EPA) said in September that some 500,000 US Volkswagen diesel vehicles with two-liter four-cylinder diesel engines were failing to meet US emissions standards and had been equipped with software designed to fool emissions tests. The Environmental Protection Agency (EPA) said in September that some 500,000 US Volkswagen vehicles with two-liter, four-cylinder diesel engines were failing to meet US emissions standards and had been equipped with software designed to fool emissions tests.
Vehicles that had been sold on promises they were greener than the average car were in fact emitting up to 40 times the nitrous oxides allowed by law in its exhaust fumes, according to the EPA, and had been programmed to cheat on compliance tests. Volkswagen has since admitted that about 11m cars worldwide currently carry the cheating software.Vehicles that had been sold on promises they were greener than the average car were in fact emitting up to 40 times the nitrous oxides allowed by law in its exhaust fumes, according to the EPA, and had been programmed to cheat on compliance tests. Volkswagen has since admitted that about 11m cars worldwide currently carry the cheating software.
The scandal has devastated VW’s image in the US, a market it has struggled to crack. At least 200 lawsuits have been filed against Volkswagen since the scandal broke. VW owners are angry at being asked to give up their cars to have them repaired, but more broadly there is widespread fury at the company for capitalizing on its image as safe and environmentally friendly in a market anxious about climate change.The scandal has devastated VW’s image in the US, a market it has struggled to crack. At least 200 lawsuits have been filed against Volkswagen since the scandal broke. VW owners are angry at being asked to give up their cars to have them repaired, but more broadly there is widespread fury at the company for capitalizing on its image as safe and environmentally friendly in a market anxious about climate change.
“Over the past several weeks, we’ve apologized to our loyal customers about the 2.0L TDI emissions issue,” the company wrote on its voucher redemption site. “As we work tirelessly to develop a remedy, we ask for your continued patience.”“Over the past several weeks, we’ve apologized to our loyal customers about the 2.0L TDI emissions issue,” the company wrote on its voucher redemption site. “As we work tirelessly to develop a remedy, we ask for your continued patience.”
The “goodwill package” is available to registered owners or lessees as of Sunday; anyone wanting to claim the $1,000 in gift cards will have to do so by 30 April 2016.The “goodwill package” is available to registered owners or lessees as of Sunday; anyone wanting to claim the $1,000 in gift cards will have to do so by 30 April 2016.
The scandal cost VW CEO Michael Winterkorn his job and has widened as investigation continues: over the weekend, it was revealed by German newspaper Bild am Sonntag that the company had allegedly engaged in yet broader environmental compliance test cheating, much of it less high-tech and affecting an additional 800,000 vehicles. The scandal cost VW CEO Michael Winterkorn his job and has widened as the investigation continues: over the weekend, it was revealed by German newspaper Bild am Sonntag that the company had allegedly engaged in yet broader environmental compliance test cheating, much of it less high-tech and affecting an additional 800,000 vehicles.
Appearing before Congress in October, Volkswagen America’s new CEO Michael Horn attributed the faults to “a couple of software engineers who put this in for whatever reasons” and said that he had had no knowledge of the deception prior to a meeting with the EPA.Appearing before Congress in October, Volkswagen America’s new CEO Michael Horn attributed the faults to “a couple of software engineers who put this in for whatever reasons” and said that he had had no knowledge of the deception prior to a meeting with the EPA.
The company lost the top sales spot among carmakers to Japanese rival Toyota at the end of October. Sales were flat for the company’s first financial report since the scandal and sales figures rose last month, but analysts attributed the gains to steep discounts being offered by the firm. The company released its newest model, the 2016 Passat, almost at the moment the scandal broke.The company lost the top sales spot among carmakers to Japanese rival Toyota at the end of October. Sales were flat for the company’s first financial report since the scandal and sales figures rose last month, but analysts attributed the gains to steep discounts being offered by the firm. The company released its newest model, the 2016 Passat, almost at the moment the scandal broke.
US authorities are strictly overseeing VW’s plans to fix its vehicles. The company was handed further woes on Monday when Germany’s transport ministry said that software fixes wouldn’t work for about a quarter of that country’s diesel VW vehicles. Those cars will need to be recalled and retrofitted with better hardware, as well.US authorities are strictly overseeing VW’s plans to fix its vehicles. The company was handed further woes on Monday when Germany’s transport ministry said that software fixes wouldn’t work for about a quarter of that country’s diesel VW vehicles. Those cars will need to be recalled and retrofitted with better hardware, as well.
Volkswagen shares fell precipitously in September and have not recovered; the market dipped on news of the customer payout, as well. There are likely to be more falls to come. Volkswagen shares fell precipitously in September and have not recovered; the market dipped on news of the customer payout as well. There are likely to be more falls to come.
Also on Monday, Fitch, the credit rating agency, downgraded Volkswagen’s debt by two notches to reflect the potential financial costs of the scandal, as well as the management problems that led to the crisis in the first place. The downgrade follows a similar move by Moody’s last week. Fitch cited the “possibility of further problems still to be uncovered” by the company’s internal investigation as well as “relatively weak corporate governance”.Also on Monday, Fitch, the credit rating agency, downgraded Volkswagen’s debt by two notches to reflect the potential financial costs of the scandal, as well as the management problems that led to the crisis in the first place. The downgrade follows a similar move by Moody’s last week. Fitch cited the “possibility of further problems still to be uncovered” by the company’s internal investigation as well as “relatively weak corporate governance”.
Early in October, Kelley Blue Book said the average resale value of Volkswagens with two-liter diesel engines fell 13% since mid-September, when VW admitted it cheated on the tests. Used car values often drop in the fall, since demand for them is stronger in the summer. But VW’s diesel decline is unusually large. The price of gas-powered Volkswagens dropped 2% in the same period. Early in October, Kelley Blue Book said the average resale value of Volkswagens with two-liter diesel engines fell 13% since mid-September, when VW admitted it cheated on the tests. Used car values often drop in autumn, since demand for them is stronger in the summer. But VW’s diesel decline is unusually large. The price of gas-powered Volkswagens dropped 2% in the same period.
Volkswagen is already offering $2,000 to current VW owners to trade in their cars for new vehicles, and the gift cards and vouchers would add $1,000 to that. The scandal expanded last week, when the EPA accused VW of cheating with different software on larger six-cylinder diesels in about 10,000 vehicles. VW also acknowledged finding irregularities in carbon dioxide emissions in 800,000 other vehicles, all outside the US. Some of those were powered by gasoline engines.Volkswagen is already offering $2,000 to current VW owners to trade in their cars for new vehicles, and the gift cards and vouchers would add $1,000 to that. The scandal expanded last week, when the EPA accused VW of cheating with different software on larger six-cylinder diesels in about 10,000 vehicles. VW also acknowledged finding irregularities in carbon dioxide emissions in 800,000 other vehicles, all outside the US. Some of those were powered by gasoline engines.