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Car owners may demand compensation for “Dieselgate”

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Car owners may demand compensation for “Dieselgate”
February 25
13:00 2019

The Federal Court of Germany has decided that the software with which diesel cars are equipped can be regarded as a defect. It should be mentioned that the software displays incorrect data on the composition of the substances contained in the exhaust gases. In practice this means that cars equipped with the similar software are now considered defective.

Thus, in case with the Dieselgate, the Federal Court has supported the owners of Volkswagen cars, who will be able to demand compensation. By the way, the variant of filing a collective claim, which is very rare in Germany, is also possible.

The position of the court was reasoned by the fact that the authorities might prohibit the use of the transport with this kind of defect. This means that the buyer has the right to expect a replacement. In this case, Volkswagen cannot refuse to buy cars because they remain in working condition.

It was 2015 when the information about the installation of the software with a peculiar defect was made public. The US authorities initiated the investigation, which resulted in the recognition that the concern had sold about 11 million cars with the possibility of changing the results of tests for compliance with environmental standards.

With the start of the Dieselgate scandal, the company began to massively recall sold cars in order to eliminate that defect. In order to settle the scandal the American authorities and Volkswagen agreed on the fine of $ 18 billion.

VW and other manufacturers have so far refused to pay compensation to German buyers of diesel engines. Now the situation will change.


The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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