Volkswagen settles “dieselgate” legal battle in Italy for EUR 50 mn
Volkswagen, along with a car owners’ group in Italy, has resolved a longstanding legal dispute related to the “dieselgate” emissions scandal, agreeing to a settlement exceeding EUR 50 million (USD 54 million). This marks a significant development in the aftermath of the emissions fraud scandal that rocked the automotive industry in 2015.
Agreement details
The settlement amounting to 50 millions euro, will be paid to more than 60,000 Italian consumers within the year and each driver may receive up to EUR 1100, said the Italian consumer association Altroconsumo. This agreement heralds the end of litigation proceeding that has been ongoing since 2015 and gives a solution to all the parties involved as has been confirmed by Volkswagen’s Italian arm.
Background on dieselgate
The “dieselgate” scandal occurred in 2015 and it turned out that VW group had put illegal software into the cars to affect the emission results, causing the biggest catastrophe the automotive sector experienced. The fallout has resulted in substantial financial repercussions for the German automaker, with fines, refits, and legal expenses totalling over EUR 32 billion.
Statement from Volkswagen
Volkswagen’s Italian branch acknowledged its commitment to putting clients’ interests first in Italy, suggesting that the settlement has become a conclusion to many years of drawn-out legal proceedings and a satisfactory solution for all the stakeholders is jointly being envisaged. The statement of the company reiterates the fact that the company is working closely to reduce the crisis that was caused by the emissions scandal.
Scope of settlement
The agreement includes people who owned Volkswagen, Audi, Skoda, and SEAT vehicles that were fitted with EA189 diesel engines within the period of 2009 till 2015. Altroconsumo launched class action lawsuit against Volkswagen in 2015 which was supported by sister organizations in Belgium, Spain and Portugal under Euroconsumers brand, that was aimed to grant equitable compensation to all the dieselgate victims globally.
Euroconsumers’ position
Els Bruggeman, Head of Euroconsumers Policy and Enforcement, noted that all the dieselgate casualties need equal treatment in all the affected countries and they must be rightfully compensated. This statement in no doubt puts forward the idea that it is a case of equal respect for all the individuals which are involved in the emissions scandal.
This settlement in Italy which is part of the “dieselgate” legal struggles between Volkswagen and the Italian judicial system is a very crucial milestone in the company’s effort to put the effects of the emissions scandal behind it. This settlement extends compensations to the owners of the vehicles and sends a signal to the world signalling the end of the long drawn legal battle of recent years. It is yet another milestone in resolving the most critical controversy of recent times involving the automotive industry.
(Inputs from Reuters)