Volkswagen has confirmed an expected compensation of as much as $1,000 to owners of its diesel cars affected by the recent emissions scandal.
The automaker admitted in September it had installed devices that cheated on emissions tests.
Owners and lessees of 2-liter TDI models affected by the problem would be eligible for a $500 cash card to spend freely. They would also get another $500 to spend at Volkswagen dealerships as well as free 24-hour roadside assistance for three years.
Car owners who accept the offer will not be asked to waive future rights to sue or claim other compensation, according to a
Volkswagen called the offer a “good-will package” it hoped would help restore trust with its customers. The company came under immediate criticism from two lawmakers.
Senator Richard Blumenthal, Democrat of Connecticut, and Senator Edward J. Markey, Democrat of Massachusetts, in a joint statement, called the offer “insultingly inadequate” and a “fig leaf attempting to hide the true depths of Volkswagen’s deception.”
Both are members of the Senate Committee on Commerce, Science and Transportation.
The lawmakers said Volkswagen should offer owners a buyback option if they wanted to get rid of their cars, or a compensation for the loss of resale value, fuel economy and other damages.
They also criticized the company for not stating unambiguously that car owners retained their right to sue.
The offer does not extend to 3-liter Volkswagen, Audi and Porsche models that the Environmental Protection Agency had recently said were also equipped with illegal software. Volkswagen has denied the software in those cars was designed to cheat on emissions tests.