Volkswagen is prepared to offer individual owners of diesel cars $1,250, according to several media outlets, as the carmaker continues its efforts to recover from its admittance some of its cars are programmed to cheat on emissions test.
Volkswagen hasn’t confirmed reports in the New York Times and on the automotive site, The Truth About Cars, the owners would get a cash card worth $500 and another $500 to $750 that they could spend at a Volkswagen dealer.
The company faces lawsuits from owners seeking compensation for the decreased resale value of the roughly 500,000 Volkswagen and Audi vehicles that were equipped with illegal software.
Volkswagen admitted in September many of it diesels are equipped with software to cheat of the emissions tests. The software allowed the cars to detect when emissions testing was underway and turn on the emissions controls. But when the cars were on the road, they emitted up to 40 times the permissible amount of nitrogen oxide.
The report on The Truth About Cars did not specify is owners would have to give up any rights to sue if they accepted the cash.
Volkswagen cars with illegal software include diesel Golf, Jetta, Beetle and Passat models sold since the 2009 model year, as well as Audi A3 cars.
The Environmental Protection Agency said on Monday that some larger Volkswagen, Audi and Porsche diesel vehicles, all of which are produced by Volkswagen, also had software that was not allowed. Volkswagen has denied the claim.