Senators: Volkswagen, Audi Goodwill Package is ‘Insultingly Inadequate’

In an effort to redeem itself after the recent scandal over its test-cheating emissions software, Volkswagen and Audi have announced an incentive package for current owners.

The Goodwill Package announced in November, includes a $500 dealership credit, a $500 Visa debit card that can be spent on anything, and three year’s worth of roadside assistance. The offer is extended to owners of 482,000 diesel-engine Volkswagens and Audis.

Accepting the offer will not require owners to give up their right to participate in a Volkswagen class action lawsuit or to forego additional compensation in the future, according to a company spokesperson.

The offer does require Volkswagen owners to submit their claim through a special website. They’re required to enter their vehicle identification number, name, address, and their vehicle’s mileage.

They can expect to receive their “goodwill package” in four weeks, which they must take to a Volkswagen dealership to collect their debit card and dealer credit. A similar offer will be made for owners of the Audi A3 from model years 2009 to 2015.

However, two U.S. senators decried the offer as being “insultingly inadequate.” Democratic Sens. Richard Blumenthal of Connecticut and Edward J. Markey of Massachusetts issued a statement on the same day Volkswagen announced the offer, saying the package is “a fig leaf attempting to hide the true depths of Volkswagen’s deception.”

The Senators say Volkswagen should offer to buy back every affected car, or to compensate owners who want to keep their cars for lost resale value, fuel economy and other losses. They also say Volkswagen should expressly state that each owner retains the right to sue.

The senators also expect Volkswagen to cooperate fully with federal civil and criminal investigations.

Volkswagen has much work to do in rebuilding its reputation after admitting recently that it installed software on as many as 11 million diesel-engine vehicles that would trick emission testing equipment into showing lower emissions measurements.

The software allowed vehicles to pass inspection even though under real driving conditions they would emit up to 40 times the legal limit for certain emissions.

In addition to the “goodwill package,” Volkswagen is planning fixes for the affected vehicles, ranging from software updates to replacement components for the exhaust system. VW says those fixes will be available in the spring of 2016.

The company has earmarked $7.3 billion to address the problem worldwide. The incentive package alone could cost the company $482 million. Fines for violations of the U.S. Clean Air Act could reach $375 million.

The scope of the Volkswagen scandal has expanded since it was originally made public in September 2015. The Environmental Protection Agency recently accused Volkswagen of installing another emission test-cheating software in 10,000 other Volkswagen, Audi and Porsche cars using 3-liter V6 diesel engines. VW denied that accusation.

UPDATE: On June 28, 2016, Volkswagen reached proposed settlements with both the U.S. Department of Justice and the U.S. Federal Trade Commission following the VW emissions scandal. VW’s deal with the DOJ includes up to $14.7 billion along with vehicle buyback provisions as well as funding for pollution control programs. In addition to the DOJ settlement, Volkswagen will also spend up to $10 billion in a buyback and lease termination settlement with the FTC that is expected to include about 475,000 vehicles.

UPDATE 2: The Volkswagen, Audi diesel emissions class action settlement is now open! Click here to file a claim!