Volkswagen AG US subsidiary has decided to refund $1000 to all diesel owners in US . The refund will be done in lieu to the emission scandal unearthed last month . The company in a statement said that the money will be paid in form for credit card payback . Eligible US owners of 5000 VW models are also eligible for a $500 prepaid VISA card and $500 dealership card . The company also plans to offer a three year free service to all these customers .
The move could cost VW around $500 million out of which around $200 million will be given to the dealers . There is also a plan to recall certain models which does not comply to the California’s emission norm .
As per the estimate around 482000 cars with 4 cylinder diesel engine were sold with the software that allowed the engines to pass the nitrogen oxide emission test ,