VW Offers $2,000 Loyalty Bonus to Prevent Defections
VW hopes that the $2,000 incentive will stem defections from customers scandalized by the emissions cheat scandal. 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, a VW spokeswoman said. But will this be really enough to stop the wave of migrating clients? Also, the auto insurance industry has reacted to the scandal and the best way to notice the consequences is to get auto insurance quotes online and compare prices for all major insurers.
The offer comes as VW struggles 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 programmed to cheat on U.S. emissions tests.
“The heart and soul of this brand relies upon the devoted customers and dealers that drive our products on a daily basis,” VW of America COO Mark McNabb said in an Oct. 2 memo to dealers announcing VW’s monthly incentive programs.
VW will also continue its September incentive programs, McNabb said. Those include hefty dealer-cash bonuses of $2,000 to $2,750 for gasoline Passat midsize sedans, $2,250 for gasoline Jetta compacts and $4,000 for the Touareg crossover, CC coupe-styled sedan and Eos convertible.
VW has turned to spending huge amounts of money as it works to keep its dealers engaged and prevent existing owners from defecting to their competitors, like Honda or Toyota. Last month, VW launched a series of steps to stabilize dealer profits, including floor plan reimbursements for grounded diesel models and guaranteed payouts of $300 per unit under its sales-based bonus program for dealers. But VW faces a series of prosecutions from an increasing number of countries and even the IMF (International Monetary Fund).
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