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VW and the Illegal Emissions Problem

Posted on: 11/17/2015

It should be clear that VW dealers were unaware of the illegal emissions test-rigging software problem and will act to protect their customers, not VW corporate. Dealers will undoubtedly suffer more than any other parties from the deception caused by employees at VW.

There will be customers lost by the dealer forever. Lost customers means lost sales and lost revenue opportunities for the owner, management, sales, service, parts department and all employees of the dealership.

Many years ago manufacturers stressed the importance of satisfaction for the buyer. The dealer was responsible for all facets of CSI (Customer Satisfaction Index) and through CSI, customer opinions changed. It was the dealer that was held responsible for keeping the customer satisfied even if the problem was a result of a poor quality product from the factory.

The first move from VW has been a “goodwill offer” of $1,000 to owners of diesel cars affected in the illegal emissions scandal.

VW is offering $2,000 to current VW owners to trade in their cars for new vehicles and the “goodwill” package offers $500 on a prepaid Visa car, $500 in dealership credits and three years of free roadside assistance.

This initial offering from VW does not stop owners from seeking more. The Detroit News wrote:

However, Robert Hilliard, an attorney representing hundreds of owners of diesel cars covered by the EPA investigation, cautioned that consumers signing up for payments should be mindful of any fine print that would agree to arbitration instead of litigation.

State laws can allow the refund of the entire purchase price, and jury awards can be tripled if defendants are proven to have actual knowledge of bad conduct.

Ryan Beene, in an article for Automotive News, wrote:

TDI owners who try to sell now will almost assuredly take a bath as VW diesel values continued to fall this month. For example, Jetta diesels at auction were worth $11,139 on average, a decline of 18.5 percent or more than $2,500, from pre-crisis levels in early September, according to Black Book.