WASHINGTON, Nov. 7 (UPI) — Volkswagen of America may compensate diesel car owners up to $1,250 in an attempt to revive consumer trust as it faces a high-profile emissions scandal.
The automobile company is expected to announce its “TDI Goodwill Program” Monday. The Truth About Cars reports the company is poised to pay customers using two prepaid cards: one holding $500 to be used at the customer’s discretion, and another holding between $500 and $750 for use at Volkswagen dealerships. The outlet says dealers were briefed on the decision Thursday ahead of the public announcement.
However, details of the company’s plan have not been confirmed, the New York Times reports.
“There is a program in the works with VW, that I do understand” Volkswagen dealer Alan Brown told the Times. However, Brown said he did not know specific details.
In September, Volkswagen was discovered to have programmed millions of diesel vehicles to falsely pass emissions tests in North America and Europe. Days after the controversy went public, CEO Martin Winterkorn stepped down from his position; Matthias Mueller of Porsche took over in late September.
Affected Volkswagen and Audi owners have filed lawsuits seeking monetary compensation for their vehicles’ damaged resale value. The company is not permitted to sell its current 2015 and 2016 models until the faulty software is repaired or replaced.