Home » Volkswagen eyes settlement with customers over ‘dieselgate’ scandal

Volkswagen eyes settlement with customers over ‘dieselgate’ scandal

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Volkswagen

Volkswagen said on a Thursday in early January that it had agreed to start talks on a settlement with German diesel owners who sued it over the emissions scandal. About 400,000 customers have joined the mass lawsuit.

“Volkswagen and the Federation of German Consumer Organisations (VZBV) have agreed to enter into discussions regarding a possible settlement,” the company said in a statement. The talks are at an early stage. The idea came from the judge in Braunschweig, who suggested in September, when proceedings opened, that the two sides first try to settle. The case covers Audi, Seat and Skoda vehicles as well as Volkswagen’s own.

Owners have waited a long time. Germany passed a regulation allowing mass lawsuits in response to the crisis, but the courts have moved so slowly that buyers of cars fitted with the cheating software have waited years for compensation. For families who bought the cars in good faith, that wait has been the hardest part.

Where the scandal began

The scandal came to light in 2015. In 2014 and 2015, researchers based in the United States showed that many Volkswagen diesels carried software that made emissions look better in tests than they were on the road. Top executives first denied it, though Der Spiegel reported that senior management had known for years.

The bill has passed €30 billion ($33.6 billion), most of it fines and customer compensation in the United States. Europe, and Germany itself, have so far seen much milder consequences.

In May 2018, former chief executive Martin Winterkorn was indicted on conspiracy and fraud charges. He has consistently denied knowing about the rigged software. In the U.S., Volkswagen pleaded guilty to conspiracy and obstruction of justice, and six executives were charged.

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