Volkswagen has paid out more than €30 billion ($33.6 billion) over its diesel emissions scandal, and German owners have so far seen little of it. The company said on Thursday that it is now in initial talks to settle a mass lawsuit brought by those owners.
“Volkswagen and the Federation of German Consumer Organisations (VZBV) have agreed to enter into discussions regarding a possible settlement,” the firm said in a statement. About 400,000 customers have joined the suit.
The catch is where the money went. Most of the bill, fines and customer compensation alike, landed in the United States, where the scandal broke. In Europe, and in Germany itself, the company has faced much milder consequences.
The mechanics of the German case explain the delay. A new regulation allows mass lawsuits, but the courts have worked so slowly that consumers have waited years for compensation for cars fitted with the cheating software.
The settlement idea came from the bench. When a judge in Braunschweig opened proceedings in September, he suggested the two sides first try to arrange one. The case covers Volkswagen vehicles and those of subsidiaries Audi, Seat and Skoda.
What the company knew
For years there had been rumblings in Europe that tests and real-world emissions did not match. In 2014 and 2015, researchers based in the United States showed that many of Volkswagen’s diesel cars carried software that made test results look better than the cars were actually delivering.
Top executives denied it at first. Der Spiegel then reported that senior management had known for years.
Former CEO Martin Winterkorn was indicted on conspiracy and fraud charges in May 2018. He has consistently denied knowing about the rigged software. In the United States, Volkswagen pleaded guilty to conspiracy and obstruction of justice, and six executives were charged.
