Earlier this year, the Dieselgate saga seemed to have reached its end in Germany when Volkswagen and the Federation of German Consumer Organizations (vzbv) reached a €830 million ($904 million) settlement.
Under said deal, approximately 260,000 consumers were eligible to receive a compensation package ranging from €1,350 ($1,470) to €6,257 ($6,817), depending on the model and age of the vehicle.
Mind you, that deal did not cover all the consumer claims, as a further 60,000 lawsuits are still pending with lower German courts. The German federal court of justice, the Bundesgerichtshof (BGH), gave a solution today that will very likely serve as a template for the remaining claims.
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Owner awarded €25,600 for a used VW Sharan he had bought for €31,500 in 2014
The country’s highest court ruled that Volkswagen must buy back the defeat device-equipped cars but consumers must accept the current value of the car based on the mileage they drove since buying it, not the purchase price.
The BGH basically confirmed the verdict from the Koblenz upper regional court which previously ruled the owner of a VW Sharan minivan equipped with the emission-cheating software was entitled to reimbursement. While the owner had sought the full purchase price, the court ruled he must accept less to take into account the depreciation related to the distance he drove. The judge decided the owner should be awarded €25,600 ($27,900) for the used-car purchase he made for €31,500 ($34,320) in 2014.
Upon learning the verdict, Volkswagen said it would work urgently with owners on an agreement that would see them keep the vehicles for a one-off compensation payment. The company did not offer an estimate of how much BGH’s ruling might cost it but if we multiply the ruling from the VW Sharan by 60,000 owners, the bill would be in excess of €1.5 billion ($1.63 billion).
VW looking to pay less in compensations by letting owners keep the cars
“The verdict by the BGH draws a final line. 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.
According to a Volkswagen spokesman, more than 100,000 claims for damages are still pending outside Germany, 90,000 of which in Britain.
Since Volkswagen was caught cheating by U.S. authorities in 2015, the company has paid more than €33 billion ($36 billion) in fines and settlements worldwide. In addition, two of its executives went to jail in the United States and more are facing investigations and criminal proceedings in Germany. The carmaker still faces lawsuits from investors.