Last Friday the U.S. Environmental Protection Agency (EPA) that Volkswagen essentially cheated during emissions tests of its diesel cars. According to an agency official, “[T]hese cars contained software that turns off emissions controls when driving normally and turns them on when the car is undergoing an emissions test.” The company has sold nearly half a million VW and Audi diesel vehicles since 2008.
The maximum fine for each vehicle could be as high as $37,500, or a total of $18 billion.
The loyalty bonus is being paid for new purchases or leases of a 2015 or 2016 Jetta S, a 2015 Passat 1.8T S, and a 2015 or 2016 Golf GTI.
A glance through the company’s incentives information reveals how hard the company is trying to bump up its U.S. sales. There are 8 special offers for various Jetta models, including, for example, a 0% financing offer for 72 months on a 2015 Jetta and a Jetta TDI Clean Diesel S. The diesel model is also available on 36 month lease at $209 a month after a signing payment of $1,999.
Volkswagen has been working to build its sales in the U.S. and sales have been improving slightly. In August the company sold more than 56,000 units, down 8.1% compared with August 2014, and year-to-date sales are down 2.8%.
Consumer Reports magazine cited a statement from EPA:
Car owners should know that although these vehicles have emissions exceeding standards, these violations do not present a safety hazard and the cars remain legal to drive and resell. Owners of the impacted models do not need to take any action at this time.
The magazine also noted that in states where emissions testing is required in order to secure the vehicle’s registration, the VW diesel models will “cannot pass the inspection” and register the vehicle until Volkswagen recalls the cars and fixes the problem.
A $500 loyalty bonus is not enough. As we suggested yesterday, VW is dead in the water.
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