VW stops USA, Canadian sale of a few Audi models

Volkswagen’s USA subsidiary said on Monday it will offer $1,000 worth of credit cards, of which half may be spent at VW and Audi dealerships, to owners of certain diesel models the company has admitted do not comply with government emissions standards. VW is also offering affected owners a new (or extended) three-year, 24-hour roadside-assistance deal. VW says it hopes owners see this as a first step towards restoring trust.

The agreement dictates that any arbitration must be brought in Sioux Falls, S.D., a location “that is an extremely inconvenient” for most VW diesel auto owners, Williams-Derry said. 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 harmful nitrogen oxide while being driven. The second card is also valued at $500, and can be used toward a purchase or service transaction at a Volkswagen dealership.

The automaker posted details of its “goodwill package” at www.vwdieselinfo.com.

Separately, Volkswagen said its head of corporate communications, Andreas Lampersbach, quit on Monday, joining a wave of departures as the scandal over its manipulation of emissions tests escalates.

Two Democratic US senators who have been critical of Volkswagen called the payments “insultingly inadequate”.

Volkswagen have created a website where owners of affected vehicles can enter their respective vehicle identification numbers in order to find out if they are qualified to get the $1,000 gift cards.

While owners thought VW might throw them money as a way to keep their business, those same owners were leery of small print included in any offer, especially concerning legal matters.

Following the release of VW’s goodwill package, Sens. “These are good and necessary first steps but Volkswagen has much more work to do ahead”.

“Affected customers eligible for the goodwill package are not required to sign a release…in order to receive the package”, said VW spokeswoman Jeannine Ginivan.

“We are working tirelessly to develop an approved remedy for affected vehicles”, Michael Horn, Volkswagen Group of America’s president and chief executive officer, said in an e- mail.