The USD $21 billion “Dieselgate” settlement announced by Volkswagen of America won’t see any cash flowing to Kiwis or any other markets outside of the USA.
“There will not be any cash compensation for any markets outside the USA, because we have a solution to the issue and have been implementing it since the beginning of the year,” says Volkswagen New Zealand general manager Tom Ruddenklau.
“There is no material change in New Zealand or other global markets; we will continue working with the factory on reprogramming vehicle software for the affected cars to reduce emissions while retaining engine power,” says Ruddenklau.
Volkswagen of America has agreed to buy back or repair around 475,000 diesel vehicles, and owners will receive additional compensation between USS $5100 to $10,000 regardless of which option they choose.
The settlement comes because US environmental laws are many times more stringent than other markets, and Volkswagen of America is unable to meet the requirements required to make vehicles comply with these.
More than 20% of the 5,020 affected diesel vehicles in New Zealand have the new reprogramming, says Ruddenklau.
Ruddenklau says the recall started with Amarok, and then a week ago the Tiguan recall started which he says are the bulk of the vehicles requiring a fix.
A recall for the Passat is imminent according to Ruddenklau, and following it is the recall for the Golf and Caddy.
Ruddenklau also says Volkswagen New Zealand winning the vehicle manufacturer segment in the Roy Morgan Research Customer Satisfaction Awards, shows that the dealer network is navigating quite well through this episode.
The awards are judged by 13,000 consumers through surveys throughout the year – and the category had been held by Suzuki for the last four.
