German court convicts Volkswagen in dieselgate scandal | Business


Volkswagen has lost a historic legal battle in Germany’s highest civil court over compensation for the buyer of a used minivan equipped with emission control software.

The world’s largest automaker is to take over the manipulated car from the Plantiff and pay it € 28,257.74 (£ 25,325) in a case that will lead the company to compensate 60,000 German VW owners.

The move is the latest blow to the so-called dieselgate scandal, in which Volkswagen and fellow German automaker Daimler paid more than € 30 billion (£ 28 billion) in fines and compensation worldwide since its revelation in 2015.

VW was found to have installed software that artificially reduced nitrogen oxide emissions when vehicles were tested, which means that the performance of harmful pollutants was much higher under real conditions.

Volkswagen diesel emissions: what the automaker did and why

The German Federal Court of Justice has declared that Herbert Gilbert is entitled to compensation for the purchase price of the passenger carrier Volkswagen Sharan less mileage costs. Gilbert bought the car in January 2014.

Claus Goldenstein, a lawyer handling approximately 21,000 VW cases, including Gilbert, said: “The decision means legal certainty for millions of consumers in Germany and shows once again that even a large company is not at- above the laws. Today we wrote history. “

In the UK, Volkswagen is facing 91,000 consumer complaints in a collective justice decision. A High Court judge who heard the case found that Volkswagen had installed a “cheat device” in cars under its Volkswagen, Audi, Seat and Skoda brands. Although it has been established that it cheated on emissions in the United States, Volkswagen has challenged the charge in the United Kingdom.

The dieselgate scandal rocked Volkswagen, with billions of euros wiped out from its market value and fraud charges for its former chief executive Martin Winterkorn. The fallout was also credited for prompting Volkswagen to accelerate its plans to become the world’s largest manufacturer of battery-powered electric vehicles with zero exhaust emissions.

The latest ruling removes one of the last legal risks facing Volkswagen in Germany in connection with the scandal. In February, the company paid a deal with about 240,000 car owners in a separate action that will cost it around 750 million euros.

Volkswagen said it would pay compensation in Germany as soon as possible and offer one-time payments based on individual requests.

A Volkswagen spokesperson said: “The decision of the German Federal Court of Justice will end the procedure concerning diesel in Germany.

“Volkswagen is now seeking to quickly conclude this procedure in agreement with the complainants. We will therefore approach the complainants with the appropriate settlement proposals. “

Spokesperson said automaker did not expect much more consumer lawsuits due to high acceptance rate and limits on new claims .


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