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Seven weeks after news of Volkswagen’s emission scandal broke, the company is offering $1,000 in gift cards and vouchers to owners of the affected diesel cars.
Michael Horn, president and CEO of Volkswagen Group of America, said they’re providing this “goodwill package” as a first step towards regaining their customers’ trust.
Government officials and consumer advocates don’t think much of the offer.
“The cash program announced today by Volkswagen appears to be a goodwill gesture and nothing more,” said Washington State Attorney General Bob Ferguson.
“It in no way diminishes the seriousness of the deceptive practices and environmental harms that are the subject of the states’ investigation, or the determination of the attorneys general of 48 jurisdictions to hold Volkswagen to account for its conduct.”
Washington is one of six states leading a consumer protection investigation that includes 47 states and the District of Columbia into recent revelations that Volkswagen was allegedly cheating on emissions tests.
Mike Litt, consumer advocate for U.S. PIRG, said Volkswagen’s offer of $1,000 in gift cards is a good first step since it appears to come with no strings attached.
However, Litt said Volkswagen should take full responsibility for its deceit and harm to nearly 500,000 customers by offering to buy back defective cars at their original prices.
“$1,000 pales in comparison to the money consumers spent purchasing vehicles that were fraudulently marketed to them,” he said.
Volkswagen also should be held accountable for the environmental harm it has caused by turning on emission controls during testing and turning them off during regular driving, emitting as much as 40 times the legal limit of smog-forming pollutants, Litt said
U.S. PIRG has launched a Make VW Pay Campaign to hold Volkswagen accountable. Key elements include:
- Volkswagen must offer to buy back all “defeat device” diesel cars with full rebates to customers.
- The EPA must demand tough penalties; the law calls for penalties up to $37,500 per car – or $18 billion total.
- Congress must put an end to the auto industry’s “get out of jail free” loophole that makes it harder to prosecute executives for intentionally violating the law.
- The U.S. Department of Justice must stop allowing tax write-offs for wrongdoing.
- The U.S. Department of Transportation must enforce strong federal fuel efficiency standards.
