Volkswagen is looking to limit the damage that has been caused by the diesel emission scandal. According to Automotive News, part of this comes from buying some used TDI model on U.S. dealer lots at pre-crisis prices.
Speaking with dealers briefed on the plan, Volkswagen will guarantee the value of used models equipped with 2.0 TDI containing the illegal software sitting on dealer lots. If the vehicles aren't sold within 60 days, Volkswagen will buy them back.
In a memo from Volkswagen of America COO Mark McNabb, the program will take three phases. The first phase will have Volkswagen making an inventory of the TDI models to help the company figure out which ones are eligible for the program. Volkswagen expects this phase to finish by the middle of November. Further details of the other two phases will take place later in the month.
Volkswagen hopes this plan will stop the freefall prices in light of the scandal. According to Kelly Blue Book, the average price of a Volkswagen TDI model dropped 16 percent after the scandal was brought to light. The plan will also hopefully prevent a pileup of diesel vehicles sitting on dealer lots.
Source: Automotive News (Subscription Required)