Volkswagen Is Playing With The Idea Of A Discount Program For Customers They Cheated

Volkswagen Emissions Scandal

Volkswagen Germany is thinking about offering customers a deep discount if they turn in their old models and purchase a new VW vehicle that does not feature an emissions test cheat device.

The scandal could cost Volkswagen in the vicinity of $33 billion. More than 8.5 million vehicles are set to be recalled in Europe and more than one million feature the same technology in the United States.

If the program is approved it would incentivize buyers to purchase a new vehicle, which could help increase VW sales and take some pressure off the car manufacturer as it begins to pay for its illegal activities.

According to reports, the new deal may focus on buyers of 1.6-litre diesel engines. Those vehicles will require expensive hardware upgrades to fix. Other vehicles in the lineup will only require a software fix in some cases.

The company only plans to offer the incentive in Germany, where approximately 2.4 million cars feature the emissions cheat software.

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In the meantime, the emissions scandal has destroyed 25% of VW’s stock market value, caused its CEO to resign, and led to international investigations to determine who masterminded the program.

VW’s board is now planning for cost-cutting measures that may include removing many contract and part-time workers from the company’s roster.

10 senior managers and several top engineers have been suspended following an internal investigation.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.