Volkswagen’s ‘Goodwill Package’ Offers $1000 In Gift Cards To Affected Diesel

We sincerely hope you see this as a first step toward restoring your invaluable trust.

“We are working tirelessly to develop an approved remedy for affected vehicles”, said Michael Horn, president and CEO of Volkswagen Group of America.

KBA has yet to announce which brands and models are under this investigation.

Volkswagen, based in Wolfsburg, Germany, on Monday started the hard task of convincing unions to accept cutbacks it says are necessary to survive the crisis. October: VW admits around 9000 Volkswagen, Audi and Skoda vehicles in New Zealand were fitted with the software, and are likely to be recalled next year.

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”.

That’s because in order to receive the gift cards – one for $500 redeemable at any VW dealership and the other for $500 to be spent on anything – customers have to sign an agreement that includes a waiver to the right to a trial by jury. “There are no stipulations”, she said. The revelation comes after VW’s admission in September that it rigged emissions tests for four-cylinder diesel engines on 11 million cars worldwide, including nearly 500,000 in the U.S. It has already set aside 6.7 billion euros ($7.4 billion) to cover the costs of recalling those vehicles. Since late September, two thirds of the review have been completed.

“I believe that if VW really wanted to make things right with their diesel owners…they’d buy back the cars”, said Brian Witkin, who owns a 2014 Jetta diesel. But VW’s diesel decline is unusually large.

Letters and emails to diesel owners are being sent Monday, detailing eligibility for the package, which consists of a $500 prepaid Visa card, a $500 Volkswagen dealership card and free 24-hour roadside assistance for three years. The EPA reported the device allowed VW vehicles to pollute 10 to 40 times over the legal limit. That led an employee to come forward and disclose to his supervisors that the company also understated greenhouse gas emissions and fuel consumption in up to 800,000 vehicles in Europe, including almost 100,000 gasoline-powered vehicles.

However, considering there are over 350 lawsuits against VW over the emissions scandal, lawyers for the plaintiffs have serious questions about the cardholder agreement.