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Volkswagen Giving Away $1000 Gift Cards to U.S. Diesel Owners
VOLKSWAGEN Australia says it is yet to determine if it can offer a similar cash-and-kind program for customers here that has delivered a $AU1400 goodwill package to United States owners affected by the growing emissions scandal.
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The program, which debuted on Monday, covers only Volkswagen vehicles from the 2009-’15 model years that contain so-called “defeat devices” or illegal software created to skirt USA clean-air standards. “There was apparent pressure to do so within the company, based on statements during a 2012 auto show in which former CEO Martin Winterkorn said he wanted VW to cut carbon emissions by 30 percent by 2015”.
Also Thursday, Martin Winterkorn, who resigned as chief executive of Volkswagen in September within days of the emissions cheating coming to light, has cut his last formal tie with the carmaker by resigning as chairman of the supervisory board of its Audi division.
“In this process, every single day counts”, Herbert Diess, head of the VW brand, said in the letter. The deal includes a $500 Visa gift card, a $500 dealership card and free 24-hour roadside assistance for three years.
“It is not a common practice”, Alexandra Wrage, president of Trace worldwide, a company in Annapolis, Md., that provides advice to companies on compliance issues, told The NY Times.
Volkswagen shares opened Tuesday trading down 40 cents, or 1.5%, to $25.66 U.S, in the lower regions of a 52-week trading range of $22.71 U.S.to $52.87 U.S. “It would have been very easy to write that contract and put in language that this will not be a waiver of your right to pursue a jury trial in connection with your status as a potential class member in one of the many lawsuits against Volkswagen”. 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.
According to the news organization, a source close to the investigation claims Volkswagen is looking at around forty employees potentially involved. VW is still discussing those results with the EPA, and those vehicles aren’t included in the gift card offer.
Information from the NY Times was used in this report.
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Porsche warned last month that profits would be hit by the revelations, which affect 11 million VW group vehicles.