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Volkswagen is offering its diesel vehicle owners $1,000 in incentives, in what it calls "a first step" toward regaining their loyalty following the scandal over faked emissions tests.

The package is available to about 480,000 customers in the U.S. and Puerto Rico with 2-liter, four-cylinder diesel vehicles. They can apply to receive a $500 prepaid Visa card, a $500 dealership card and three years of free roadside assistance, the company said.


"We are working tirelessly to develop an approved remedy for affected vehicles," Volkswagen's U.S. chief executive, Michael Horn, 

. "In the meantime we are providing this goodwill package as a first step towards regaining our customers' trust."


Volkswagen has been mired in controversy since acknowledging that software sold in Golf, Jetta, Beetle and Passat models had been programmed to cheat on emissions tests.

The company said its Audi luxury brand would offer the same award starting Friday.

Customers who accept the money will not give up their right to sue, the company said.

 by U.S. Sens. Richard Blumenthal of Connecticut and Edward Markey of Massachusetts called the $1,000 gift an "insultingly inadequate amount — a fig leaf attempting to hide the true depths of Volkswagen's deception":


 Volkswagen's credit rating by two notches, noting "that the emergence of a fraud of this magnitude, going either unnoticed or uncorrected by top management for so long is not consistent with a rating in the 'A' category." Fitch added:


Business and Economic News

Jim Zarroli

Author

The company says vehicle owners who apply to receive a $500 prepaid Visa card, a $500 dealership card and three years of free roadside assistance won't give up their right to sue.

Volkswagen makes 'goodwill' gesture to defrauded diesel owners

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