VW giving TDI owners up to in $1250 ‘Goodwill’ payouts?
Volkswagen is reportedly planning to give financial incentives to owners of emissions-cheating TDI vehicles.
The company is said to be providing two prepaid cards, one with $500 in unrestricted funds and other with $500 to $750 that can only be spent at dealerships, a dealer source has told TTAC.
Known as the “TDI Goodwill Program,” the payouts are presumably focused on mollifying frustrated or disappointed owners. The company has not yet fully detailed its recall campaign, which could reduce engine performance or fuel efficiency after vehicles are refitted with additional emissions-control gear.
The program is reportedly limited to the four-cylinder diesel engines that sparked the fiasco. It is unclear if VW will add the V6 mills that are now under investigation by the Environmental Protection Agency, however the company has claimed its V6 engines do not employ ‘defeat’ software to dodge emissions regulations.
To help manage fallout, VW has also promised to provide incentives to dealers that now have unsellable TDI vehicles sitting on lots. As auction prices collapse, the company also reportedly agreed to buy back offending vehicles at pre-crisis prices.
Some analysts suggest the debacle could ultimately cost more than $50 billion.