VW is rolling out incentive packages to customers in the US and Canada in an effort to retain them. The move was initiated due to a plunge in sales following the diesel emissions scandal in which the German automaker admitted to tampering with software used in diesel emission tests.
In the US, VW existing customers will get a $2000 loyalty incentive, which can be used for the purchase or lease of another VW vehicle. Similarly, incentive programs on an unprecedentedly large scale have been launched by VW Canada where VW sales were decreased to 5,128 compared to 6,381 last year. The fallout has been extended to Audi sales in Canada which is fallen by 13%.
VW seems to be making a big effort to prevent defections by dealers and customers, but may not be able to keep this up indefinitely considering the other losses the company is facing in terms of heavy fines (upto $18 billion) for the emissions violations and recalling more than half a million vehicles. Sales may continue to plunge as the company has announced to recall VW diesels in January that might take a year to complete the fixes.