The Strategist

Volkswagen to pay €620M within Dieselgate case

04/21/2020 - 03:19

Volkswagen Automobile Group has agreed on compensation in the total amount of €620 million to 200 thousand car owners affected by the diesel scandal as part of a pre-trial settlement of a class action lawsuit, the concern said in a press release.

The money will be paid starting from May 5. Depending on the model and age of the purchased diesel car, buyers can receive from €1350 to €6250.

In the coming days, about 21 thousand more cases will be revised. At the end of the inspection, car owners will be notified immediately.

“The large number of settlement agreements concluded today shows that our clients found a fair offer, and that the path to concluding individual settlement agreements worked well,” said company spokesman Hiltrud Werner.

Volkswagen customers could waive the lawsuit by April 20 and agree to a pre-trial settlement. But due to the increased interest, this opportunity was extended until April 30.

Volkswagen previously reported that the company and the Federal Consumer Protection Union have reached an agreement on compensation for buyers of diesel cars as part of a pre-trial settlement of the class action lawsuit. As noted in the company, the total amount of compensation will be €830 million.

The Federal Consumer Protection Union and the German automobile club ADAC previously filed a class action lawsuit against Volkswagen. The lawsuit seeks to “determine that VW, through manipulation of the software, deliberately and maliciously damaged customers and must provide compensation,” the union said.

Volkswagen has previously been accused in the United States of equipping diesel cars with software that underestimates actual emissions. The American government ordered the concern to withdraw 482 thousand passenger cars of Volkswagen and Audi brands sold in the country in 2009-2015. In January 2017, Volkswagen finally agreed with the US authorities to pay a fine of $ 4.3 billion as part of a diesel scandal.

Volkswagen is the largest car manufacturer in Europe, which unites brands such as Volkswagen, Audi, Skoda, Seat. The luxury cars division includes well-known Lamborghini, Bentley, Bugatti. The company also manufactures trucks through the Volkswagen Commercial Vehicles division, as well as the Scania brand.