Loyalty incentives from Volkswagen

10/05/2015 13:20:51
Loyalty incentives from Volkswagen
In order to motivate loyal customers, Volkswagen of America will offer a $2,000 incentive this month. Thus VW tries to manage the last month's sales fallout after the emissions scandal.

VW tries to manage the fallout from last month’s disclosure that the company sold some 482,000 diesel-powered vehicles in the U.S. market with engine software designed to cheat on U.S. emissions tests. In order to motivate loyal customers, Volkswagen of America will offer a $2,000 incentive this month.

In the wake of its admission of diesel emissions violations, VW announced that existing VW owners will receive $2,000 toward the purchase or lease of any new VW gasoline or hybrid model. According to the brand’s website, the offer can be combined with any other VW offer, except for dealer employee participation or fleet programs.

VW has turned to big spending as it works to keep its dealers engaged and prevent existing owners from defecting to other brands. Last month, VW launched a series of steps to stabilize dealer profits, including floorplan reimbursements for grounded diesel models and guaranteed payouts of $300 per unit under its sales-based bonus program for dealers.

The impact to VW’s sales in October could be magnified if the company can’t quickly release the repair plans needed to resume sales of its diesels. As of today, VW hadn’t formally submitted proposed repair plans for EPA approval. A VW spokeswoman said the company had no updates on when a repair plan would be ready, or what the repairs might include.




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