Volkswagen Coronavirus Financial Relief and New Car Incentives

The Coronavirus has swept through the nation like a tidal wave, leaving a stream of unemployed workers and economic uncertainty and in its wake. Volkswagen Group and its subsidiaries represent the 7th largest company in the world. The name Volkswagen in German means “the people’s car”, and people are all around the globe are reeling from the effects of COVID-19.

Volkswagen Coronavirus Financial Relief and New Car Incentives

Volkswagen was introduced into the American market back in 1949, but it took nearly a decade for the automaker to catch on in States. In 1960 Volkswagen, was denationalized when Germany let go of 60% of its ownership stake in the company. Within 15 years, the Volkswagen Beetle surpassed the worldwide auto sales record set back in 1927 by the Ford Model T.

Volkswagen along with the rest of the global automobile market now finds itself in a challenging situation brought on by the devastating Coronavirus pandemic. Volkswagen has formulated innovative ideas to help its current and future customers through this difficult time and also doing its part to contribute to the growing list of Coronavirus Car Payment Plans.

Volkswagen Coronavirus Relief Programs - Find the best deals!

Volkswagen has been proactive in formulating multiple avenues of support for their customers that are struggling financially during the Coronavirus pandemic.

First, existing customers who financed or leased their Volkswagen through VCI (Volkswagen Credit) may be eligible for up to 90 days of payment deferrals. Though VCI won’t charge any fees for the payment deferral, consumers should keep in mind that finance charges will still accrue on auto loan accounts regardless of the deferral.

In some cases, past maturity fees (end-of-loan) may be waived for select customers. Additionally, Volkswagen is offering lease extensions of up to six months for qualified customers. The automaker is encouraging its customers to access and manage their accounts online at Initial requests for payment assistance, relief offers, or lease extensions should be completed through this website.

Volkswagen also realizes that there are a number of customers who may have purchased their vehicles through a different financial institution. It’s recommended that any customer who financed their vehicle with an institution other than Volkswagen Credit contact their lender directly for any payment deferment programs they may be offering.

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Volkswagen New Car Incentives - Find the best deals!

Volkswagen is sensitive to the nature and fragility of the situation that surrounds the health of our nation regarding COVID-19. However, the automaker is offering a variety of incentives for new car buyers in the midst of this crisis, called its Community-Driven Promise.

Currently, the manufacturer is offering 0 down/0 security deposit and zero 1st months payment for well-qualified purchasers or lessees on the 2020 Atlas Cross Sport S, Atlas S, Jetta 1.4T with SULEV, Jetta GLI and Passat models. Well qualified purchasers and lessees of a 2019 Golf GTI, Golf Sportwagen or a Golf Alltrack may be eligible for 0% APR for 72 months and 180-day deferment on the 1st month's payment.

The company is also continuing to offer a longer-than-standard new-vehicle limited warranty of 4 years/50,000-miles. Volkswagen is also offering 2 years/20,000 miles of scheduled maintenance at no additional charge with its Carefree Maintenance program.

Volkswagen also has a unique offer available now through January 4th of 2021. They are offering a $500 bonus for qualified Military, Veterans and verified First Responders who purchase or lease a new 2020 model or new and unused 2019 model. Offers are subject to change and Volkswagen recommends contacting your local dealer for the most current incentives available in your region.

Volkswagen Factory Closure - Find the best deals!

Volkswagen lone U.S. assembly plant Chattanooga, Tennessee, suspended manufacturing and production beginning on March 21st. As it stands today, the suspension of operations is planned to continue through Sunday, April 12th (Easter Sunday). With shelter-in-place orders being extended through April throughout most of the nation, these dates are likely to be evaluated on a week-to-week basis in order to determine when it will be able to continue production.

With roughly 3,500 VW employees being affected by the pause in production downtime, Volkswagen has stated that the company’s Chattanooga employees will be paid in full during the initial weeks of the work stoppage. However, these employees will be required to use their paid time off if they wish to be compensated on Friday, April 10 (Good Friday).

Hourly and salary non-exempt employees will have the option to take "no pay-no penalty" April 10, and salary exempt employees may use comp time. Employees who are able to telework, such as office staff, will continue to do so April 6-9. All employees have been asked to self-quarantine and maintain social distancing as directed by the CDC.

Volkswagen of America in collaboration with Faurecia, one of the automaker’s fabrics and materials suppliers, has begun manufacturing personal protective equipment to assist in the fight against the Coronavirus pandemic. With a massive initial order and logistic assistance from Volkswagen directly, the Faurecia factory in Mexico has begun producing face masks and gowns to be used by medical professionals, the heroes of our nation battling COVID-19 on the front lines. The first shipment contained 75,000 units and is being distributed to New York area hospitals over the course of this week.

Following WHO and CDC guidelines Volkswagen has also undergone extensive cleaning regiments in their facilities and offered remote work and social distancing for their essential employees. Volkswagen employs over 600,000 people worldwide and is promising to continue paying its staff while anticipating when the company will be able to once continue production.

Volkswagen Economic Outlook and Sales Forecast - Find the best deals!

Volkswagen had begun 2020 restructuring some of its spending plans based in part on several of the 2019 fourth-quarter sales forecasts. 2020 was projecting towards a slight decline in the small sedan market and predicting buyers would continue opting to purchase a higher-priced SUV or Crossover option. Volkswagen was already actively making changes to lower spending on software operations and lower the production cost of their electric car lines before the economy ground to a halt due to the Coronavirus.

The unprecedented pandemic has made it all but impossible for any company to be able to accurately forecast the sales outlook for the remainder of the year, and Volkswagen is no exception. Some financial experts have compared what the impact of the Coronavirus will have on the US economy to that of the devastation of a World War. But though it may be true that we are likely to experience a profound setback in projected sales, there are actually some factors that may provide a beacon of hope for automakers. Automobiles are considered to be durable goods, and durable goods have historically demonstrated a strong ability to rebound from short-term disruptions in the market. In turn, the auto industry may be one of the few industries that weather the initial storm of this virus-related sales disruption.

To what degree the industry recovers will, of course, be directly contingent upon the overall economic environment that follows the conclusion of the pandemic. Notably, J.D. Power states that its initial 2020 outlook of 16.8 million U.S. light-vehicle sales are no longer realistically attainable due to the effects of COVID-19 on the economy. J.D. Power expects that sales will likely fall in the range of 14 to 16 million units as a result of the fallout from the Coronavirus.