DETROIT (Reuters) - Volkswagen (DE:VOWG) AG's (DE:VOWG_p) U.S. subsidiary said on Monday it will offer $1,000 worth of credit cards, of which half may be spent at VW and Audi dealerships, to owners of certain diesel models the company has admitted do not comply with government emissions standards.
The automaker said eligible U.S. owners of nearly 500,000 VW and Audi models equipped with 2.0 liter TDI diesel engines can apply to receive a $500 prepaid Visa card and a $500 dealership card, as well as three years of free roadside assistance services.
The program could cost VW nearly $500 million, half of which could flow directly to dealers.
VW also said it continues to discuss potential remedies with U.S. and California emissions regulators, including the possibility that some of the affected cars could be bought back from customers.
VW has said about 482,000 cars sold since 2009 with four-cylinder diesel engines had software installed that allowed the engines to pass government tests for smog-forming nitrogen oxide emissions, but pollute at levels far above government limits in normal operation.