$1 Million Earmarked to Placate New Beetle Owners

Volkswagen officials, red-faced over having to recall the first 10,100 New Beetles sold in the United States and Canada, have set aside about $1 million for what might be called a “please don’t hate us” campaign.

VW authorized dealers to give each New Beetle owner up to $100--in cash or services--to help take the sting out of landing a bum Bug. At a minimum, VW dealers are supposed to give each customer a full tank of gas, a carwash and a fresh flower for the bud vases mounted on each New Beetle dashboard. The rest of the allotment, dealers were told, can be given to customers as cash or in the form of coupons for parts, accessories or services.

Analysts say the cost of the campaign, which can be written off as a marketing expense, is negligible to a company as big as Volkswagen of America Inc., while the goodwill it engenders is priceless.

Volkswagen announced the recall on May 13 when it found a rough edge on the cars’ battery trays that could abrade wiring insulation. So far, about half the cars affected have been repaired, a spokesman said Thursday.