April 16, 2016 / 4:29 PM / in 2 years

Volkswagen increases discounts after emissions scandal: report

BERLIN (Reuters) - Volkswagen AG (VOWG_p.DE) is offering bigger discounts in its home market to try to lure back customers after the automaker admitted using software to allow diesel vehicles to cheat emissions tests, a German trade magazine reported on Saturday.

A flag of a Volkswagen VW car dealer is seen in Bochum, Germany March 16, 2016. REUTERS/Ina Fassbender

Germany’s Automobilwoche said Volkswagen was trying to boost the used car trade by raising discounts to up to 1,681 euros ($1,896.17)in April and May to win over buyers from alternative automakers.

A Volkswagen spokesman said current promotions in Germany were around the same level as competitors. Beyond that, he said discounts were usual measures that allowed the company to react in a flexible way to comparable offers from rivals.

The magazine cited a letter to dealers from Thomas Zahn, head of sales and marketing for passenger cars, that admitted VW had not won back trust as quickly as expected, describing delays to refit affected VW Passat cars as “disappointing”.

“We have not met our own plans and expectations,” Zahn said.

The magazine also said Manfred Bord, head of quality assurance for the VW brand, had been given the task of dealing with the emissions scandal in Europe.

A Volkswagen spokesman confirmed the appointment.

Writing by Emma Thomasson; Editing by Gareth Jones

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