Posts Tagged ‘compensation’

Protecting Consumers from VW Buyback Scandals

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By now, we know that Volkswagen has officially released a strategy to compensate their customers who currently own one of their affected 2.0L TDI diesel powered vehicles. The details on how the company will operationalize the program is yet to be made official, but we do know that customers can either sell their car back to Volkswagen as part of the buy back program, or fix the vehicle through VW’s recall. With the buy back program, customers will get maximum compensation for the value of their vehicle from prior to the emission scandal. The problem doesn’t reside with Volkswagen, it’s the vultures that are out there waiting to put a scam in place on owners who might not know the full details to Volkswagen’s compensation strategy.

The Federal Trade Commission (FTC) has already stepped in to make sure that consumers are fully aware on what options they have, and also some tips on how to protect themselves. What consumers should watch out for are scammers who want to purchase their vehicles at a lower price than the buy back and in turn flip the vehicle back to VW for some quick cash. Owners should also watch out at the dealership and know their own rights with this compensation program. Owners will not have to spend their compensation money at the dealership, the money is free for them to choose to do what they want.

With the full details of the compensation program still to come, consumers will have to wait a little bit more to determine their own course of action.


Mitsubishi to Pay $480 Million to Customers

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Although not a small sum at $480 million in comparison to Volkswagens multi-billion-dollar fiasco, Mitsubishi’s wallet is still going to take a hit as they prepare a compensation package for owners who have been affected by the company’s fuel economy data rigging. So far, the compensation and data rigging seems to be limited to customers in Japan only, but only time will tell if that is true.

Japan’s transportation ministry will be reviewing and approving Mitsubishi’s testing parameters to ensure compliance moving forward which should be completed by the end of June. The data rigging impacted a total of 20 vehicle models in Mitsubishi’s Japanese lineup. The company only revealed 13 vehicles were impacted in the past and that was caught by the ministry as well.

The customer compensation program will allot each impacted owner with $1000 in compensation.


GM to Pay Customers for Lying About Fuel Economy

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Last week it was revealed that GM overstated the fuel economy numbers on their 2016 Chevrolet Traverse, GMC Acadia and Buick Enclave models by 1 to 2 mpg. The company took immediate action and is now working on a compensation package for approximately 170,000 owners.

According to GM, the information printed on the Monroney sticker was an error and have already taken action to have the information corrected. However, investigations are already starting to determine if the misinformation is only isolated to the 2016 cars or if it is farther reaching.


Volkswagen On the Road to Making Things Right

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As emission scandals continue to grow over at other automakers, Volkswagen seem to be on the road to mending some of the damage they’ve caused to their company image and customer loyalty. Since news about VW’s emission scandal broke September of last year, the company has made no official plans to fix their dirty diesels or compensate customer.

Actually, they did give out some “I’m sorry” money to owners in the form of $1000 recently. Important to note is that customer who take this $1000 do not forfeit their right to sue the company or receive any further compensation as a result of the damages they’ve sustained from the scandal. Today, Volkswagen made official statements to the EPA on what their fix plan.

We wrote about most of these yesterday, and details on each option will become more clear come June 21st. Long and short of it, customers will have the option to either get their car bought back by Volkswagen at a price prior to the new of the emission scandal breaking. Alternatively, customers can have their car repaired at the dealership, however, details on what the fix entails have not yet been released. In both cases, customers will also receive a $5000 compensation package from Volkswagen. These options will only be made available to affected 2.0L diesel owners.


Volkswagen to Offer Customer Compensation to Diesel Owners in U.S.

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Ken Feinberg, Head of Claims Fund at Volkswagen, stated to a German paper that the company will be offering 600,000 U.S. owners of diesel vehicles a generous compensation package as a result of owning one of their emission cheating vehicles. Details on what the compensation package will look like is still unclear. Options could include a cash offer, repairs through a recall or a replacement vehicle, or even a buy back program. Current owners have already received an “I’m Sorry” package from Volkswagen totalling $1000.

Feinberg was hired by Volkswagen to handle claims and compensation for impacted diesel customers. He added that Volkswagen has given him full authority to decide on the compensation. He also stated that “It is a purely business transaction, less emotional. I see that from emails I get from vehicle owners they are all quite reasonable.”

Another question that is yet to be answered is what or if a similar compensation package will make its way to Canada. All that can be said is customers want and need to be treated fairly. Volkswagens owners are a very loyal group to the brand, but the emission scandal has certainly put a damper on brand trust.


VW Denies Customer Compensation in Europe

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In the US and Canada, Volkswagen and environmental agencies have yet to agree on a solution to bring consumer diesel vehicles back into regulation. In September of 2015, Volkswagen was caught with using emission cheating software in their 2.0L diesel vehicles which amounted to approximately 11 million cars worldwide.

Customers in US and Canada have been patiently waiting for Volkswagen to announce their official solution, so in the meantime, diesel owners don’t know how large of an impact they will face. Volkswagen North America agreed to compensate diesel owners through a goodwill package amounting to $1000 per owner.

This certainly got the EU industry commissioner, Elzbieta Bienkowska, very vocal as he wrote to Matthias Mueller, Volkswagen CEO, to consider the same compensation to Volkswagen diesel owners in Europe. Bienkowska continued to reiterate fair treatment of consumers during a meeting with Mueller. At this point, Volkswagen has not yet agreed to provide similar compensation to European consumers, but did agree to provide Bienkowska with a response to her demands.