VW diesel owners to get $1,000 in gift cards and vouchers – Business Insider multinational debit card owned by mastercard

Volkswagen

CEO matthias mueller, looks at the assembly line during a tour of

The VW plant in wolfsburg, germany wednesday oct. 21,

2015. Julian stratenschulte/pool photo

Via AP

DETROIT (AP) — owners of 482,000 diesel volkswagens and audis in

The U.S. Are eligible for $1,000 in gift cards and vouchers as

The automaker strives to placate customers dismayed by an

Emissions-rigging scandal.

VW announced the offer monday. The car owners have been in limbo

Since mid-september, when VW admitted the cars are equipped with

Software that turns on pollution controls during government tests

And turns them off while on the road.

VW has yet to unveil a fix for the cars. The U.S. Environmental

Protection agency says the cars, with 2-liter four-cylinder

Diesel engines, emit 10 to 40 times the allowable amount of

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Harmful nitrogen oxide while being driven.

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, a retired judge in pasadena,

California, who says he and his wife have owned at least a dozen

New volkswagens over the years.

The $500 visa gift card can be used anywhere, while the $500

Voucher can be used at a VW dealership for things such as an oil

Change or new set of tires, or even a down payment on a new car.

The offer also includes free roadside assistance for the diesel

Vehicles for three years.

We are working tirelessly to develop an approved remedy for

Affected vehicles, said michael horn, VW’s U.S. CEO, said in a

Statement. In the meantime we are providing this goodwill

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Package as a first step towards regaining our customers’ trust.

Steve kalafer, chairman of the flemington car and truck country

Dealerships in flemington, new jersey, said volkswagen’s offer is

A welcome first step after a long silence between the automaker,

Its customers and its U.S. Retailers.

Kalafer said he hasn’t heard yet from any customers about

Volkswagen’s offer, but he expects they’ll want more from the

Company to address the many issues raised by the emissions

Scandal.

They will appreciate the communication, but I imagine that until

A real resolution is found that appreciation will be muted, he

Said.

Volkswagen’s

Vento car hangs on display from a building during its launch in

New delhi july 6, 2010. REUTERS/B

Mathur

Whatever fix VW designs could wind up hurting performance or

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Perhaps fuel mileage, the two main reasons why people buy

Diesels. More than 200 class-action lawsuits have been filed in

The U.S. Against VW alleging that the scandal caused the diesel

Cars to drop in value.

Average auction prices of VW diesel models have dropped nearly

$2,100, or 16 percent, since the announcement, while VW gasoline

Models have fallen 4 percent, kelley blue book said monday.

Josh badall, of phoenix, arizona, just sold his 2009 jetta TDI

Because of the scandal as well as a host of mechanical problems.

He bought the car used for $9,000 in 2013 and recently sold if

For less than the kelley blue book value, at $6,500.

I don’t think solving it in a retrospective manner like that

Really changes a whole lot of anything, especially considering

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The value of those vehicles now is pretty bad, he said.

To get the gift cards and vouchers in the U.S., owners will not

Be required to sign anything giving up their right to sue

Volkswagen or force them into arbitration, spokeswoman jeannine

Ginivan said. There are no strings attached, she said.

Volkswagen already is 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.

VW said that its audi luxury brand would launch the same program

On friday.

Meanwhile, germany’s transport ministry said monday that of the

2. 4 million vehicles being recalled for fixes in germany,

Regulators currently expect that approximately 540,000 will also

Need hardware changes as well as software changes.Multinational debit card owned by mastercard it says

Volkswagen will inform owners of the details.

The company is recalling 8.5 million 2009-2015 model year cars

With the software across europe, starting next year. It says

About 11 million cars worldwide have the software.

Also 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 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 is still discussing those results

With the EPA, and those vehicles aren’t included in the gift card

Offer.

VW also acknowledged finding irregularities in carbon dioxide

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Emissions in 800,000 other vehicles, all outside the U.S. Some of

Those were powered by gasoline engines.

Dee-ann durbin in detroit, gillian flaccus in tustin, calif.,

Rick callahan in indianapolis and carlo piovano in london

Contributed to this report.