Hundreds of thousands of German diesel owners have waited years for a court to say whether Volkswagen owes them anything. On Thursday, the carmaker and the people suing it agreed to talk.
Volkswagen and the Federation of German Consumer Organizations said they would open settlement talks in the Braunschweig case. The federation brought it on behalf of more than 400,000 diesel owners, under rules Germany passed in 2018 that allow a form of class action. Lawmakers wrote those rules partly in response to the emissions scandal, which came to light in 2015.
Both sides called their aim “a pragmatic solution” in customers’ interests. They gave no details. “The talks are at a very early stage,” their brief statement said, adding that a settlement is far from certain and that both sides had agreed to keep the talks confidential.
How the case got here
The Braunschweig court opened proceedings in September. The presiding judge floated a settlement then, calling it possible but very difficult.
The case covers Volkswagen, Audi, Seat and Skoda cars with EA 189 diesel engines that were bought after Nov. 1, 2008 and later recalled. Even a win would not put money in anyone’s pocket yet. The court is asked only to decide whether the company acted illegally. If it did, customers would then have to claim compensation in separate proceedings.
That slow pace is part of the grievance. Deutsche Welle noted that German courts have moved so slowly that owners have waited years, while the money has gone elsewhere. The scandal has cost Volkswagen more than €30 billion, or $33.6 billion, much of it fines and customer compensation in the United States, where it broke. In Europe and Germany the company has faced much milder consequences.
The wider record
Researchers in the United States showed in 2014 and 2015 that many of the company’s diesel cars were fitted with software that produced better emissions results in tests than on the road. Top executives first denied it. Der Spiegel 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 software. In the United States, Volkswagen pleaded guilty to conspiracy and obstruction of justice, and six executives were charged.
Sources
- Volkswagen, German consumer group in diesel settlement talks
- VW in talks for dieselgate settlement with German customers
- Volkswagen, German consumer group in diesel settlement talks
Sources
- Volkswagen, German consumer group in diesel settlement talks
- VW in talks for dieselgate settlement with German customers
