Volkswagen may offer cash to ease the ire of hoodwinked owners

Frankfurt, Germany — Volkswagen is expected to offer cash to the owners of diesel cars in the United States this coming week as it steps up an effort to recover some of the good will it lost after admitting in September that the vehicles were programmed to cheat on emissions tests.

Volkswagen officials said the company would make an announcement on Monday but would not confirm a report on an automotive website that diesel owners would be offered up to $1,250.

The site, The Truth About Cars, said the owners would get a cash card worth $500 that they could spend any way they liked, and another $500 to $750 that they could spend at a Volkswagen dealer.

The company faces lawsuits from owners seeking compensation for the decreased resale value of the roughly 500,000 Volkswagen and Audi vehicles that were equipped with illegal software.

It was not clear whether owners would have to give up any rights to sue if they accepted the cash.

The software allowed the cars to detect when emissions testing was underway and turn on the emissions controls.

But when the cars were on the road, they emitted up to 40 times the permissible amount of nitrogen oxide, which is harmful to the lungs.

Volkswagen has promised to make changes to cars so they comply with emissions limits.

But the repairs are likely to be costly and complicated, and Volkswagen has not said how they would be carried out.

Two dealers said on Saturday that they were aware that Volkswagen was planning something but did not know specifics.

“There is a program in the works with VW, that I do understand,” said Alan Brown, head of an association of Volkswagen dealers.

Cars with illegal software include diesel Golf, Jetta, Beetle and Passat models sold since the 2009 model year, as well as Audi A3 cars.

The Environmental Protection Agency said on Monday that some larger Volkswagen, Audi and Porsche diesel vehicles, all of which are produced by Volkswagen, also had software that was not allowed.

But Volkswagen has denied that the software in those cars was designed to cheat on emissions tests, and they would probably not be eligible for the cash compensation.