Tuesday, 14 July, 2020


Germany’s Top Court Orders VW To Compensate Owners Of Dirty Diesel Cars

Dieselgate scandal: Volkswagen has to pay damages, rules court Volkswagen must buy back 'dieselgate' cars: Germany's top court
Conrad Doyle | 26 May, 2020, 03:27

Germany's top civil court on Monday ordered Volkswagen to pay compensation up to the total value of the vehicle to consumers affected by the diesel emissions scandal, ordering the company to pay an estimated 28 billion euros (nearly $30.5 billion).

Volkswagen is facing more fallout from its "dieselgate" scandal - this time on its home turf.

The plaintiffs and the defendants both appealed after the Koblenz court ruling, with the buyer demanding a full refund and the company arguing not paying at all. "It creates clarity on the BGH's views on the underlying questions in the diesel proceedings for most of the 60,000 cases still pending", Volkswagen said in a statement cited by Reuters.

Monday's hearing specifically concerns the case of a 65-year-old Herbert Gilbert who bought a diesel-powered Volkswagen Sharan minivan in 2014.

If the ruling is confirmed at 0900 GMT Monday, tens of thousands of cases for compensation could be brought to a close in the coming months.

The Federal Court of Justice passed a ruling on Monday that would force Volkswagen to reimburse a customer in full for the cost of a vehicle in a case that could set a vital precedent for other owners to receive compensation.

Dieselgate scandal: Volkswagen has to pay damages, rules court

The judges in Karlsruhe largely confirmed a lower court's finding in favour of Gilbert, ordering VW to pay around 25,600 euros ($27,887) and accept his return of the vehicle. Gilbert had sued Volkswagen and was demanding that the company return the full amount it had paid for the auto.

That payout would have been nearly 6,000 euros below the original purchase price, as the judges took into account depreciation on the vehicle.

About 60,000 similar individual German VW owners' cases are already open.

The end of April also brought the closure of a mass lawsuit against the carmaker by hundreds of thousands of plaintiffs, the first of its kind.

Volkswagen said it will "approach the plaintiffs with the adequate settlement proposals". But in criminal matters, the current CEO of the firm, Herbert Diess - who was accused by the Prosecutor of manipulation of financial markets -, and the President of the Supervisory Board, Hans Dieter Pötsch, have been out of danger after VW will agree to pay nine million euros as part of an agreement reached with the justice.

The judgment is the most up to date impact in the supposed dieselgate scandal, in which Volkswagen as well as other German carmaker Daimler have actually paid greater than EUR30 bn (₤28 bn) in penalties as well as payment all over the world given that it was disclosed in 2015.

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