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Back in autumn of 2015, a colossal scandal broke out that shook the motor industry to its core.
Volkswagen group and its subsidiaries were found to have been cheating car emissions testing through the use of so-called “defeat devices” – a fact of which VW are bizarrely accepting in some countries, and disputing in others. This shocking scandal has also prompted governments and authorities to initiate investigations in various countries across the world.
The impact on owners has been huge.
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Will VW owners affected by the Volkswagen Emissions Scandal here in the UK receive compensation?
This is the BIG question…
When the scandal broke out, millions of affected owners were horrified to find out what had happened, and how the financial value of their vehicles may be affected. So could they get their money back? In full, or even in part?
At the break of the scandal, VW UK managing director Paul Willis said that VW will not be compensating UK owners – and he hasn’t changed his remorseless tune…
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The media has been swamped with press releases surrounding the VW scandal across the world. A lot of the spotlight has been on the U.S. given the intensity of fines and criminal charges, and the recent compensation pay-outs to consumers.
Today the spotlight goes down under where VW Australia has allegedly pressured their owners to sign waivers in relation to the affected vehicles.
Shocking news!
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Volkswagen is set to plead guilty for several felony counts in America.
As well as paying out billions in fines and settlements, Volkswagen are set to be entering a plea agreement with U.S. authorities to plead guilty to charges, and pay a further $4.3 billion for their wrong doings.
Volkswagen has been charged for:
In the latest turn of events, VW has indicated that it may bring legal action against a former chairman, Ferdinand Piech. This was after Mr Piech allegedly informed the supervisory board about the potential cheating of diesel emission test in March 2015.
The report that was published stated that Mr Piech had highlighted the issue with the former CEO, Martin Winterkorn, and several other members of the supervisory board.
This suspiciously led to Mr Piech’s exit as Chairman.
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We’ve probably lost count of how many settlements have been made over in the U.S. since the emissions scandal erupted in September 2015.
Volkswagen (VW) has agreed to pay out over $20 (£16.1) billion in a bid to end the civil and criminal lawsuits in America over the emissions scandal. The pay-out extends to around 600,000 vehicles.
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U.S. District Judge Charles Breyer has given his approval for 625 Volkswagen dealers to be paid a fixed sum over 18 months for the negative impact of the VW emissions scandal has caused on their businesses.
Split between the hundreds of dealerships, each one will receive around $1.85 million over the year and a half period. Dealers have reportedly been hit by a mountain of complaints and abuse by disgruntled vehicle owners, and their sales have dropped dramatically due to the huge impact of the scandal on VW’s reputation. Therefore an initial sum of $270 million will be provided for prior payments and an extra $175 million will be given over 18 months for ongoing sales incentives.
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In the midst of the many legal battles and billions of dollars in settlements and fines being paid out so far in the U.S., Volkswagen Executives are facing criminal charges for their alleged roles in the Volkswagen Emissions Scandal too.
It has been reported that six top executives have been accused of a decade-long conspiracy to create the software for their vehicles to cheat official testing. U.S. federal authorities have issued indictments for the executives to be extradited to the U.S. for Trial.
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The VW Group initially set aside $18.2 billion (14.9 billion pounds) to pay for its wrongdoing in the emissions scandal.
However, the way these settlements are going, the German automakers will have to put their cheque-books on standby, as VW are set to pay-out another $4.3 billion (£3.5 billion) in the latest settlement.
There is, of course, our action here in the U.K. as well which will cost them a pretty penny too.
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When former VW CEO, Martin Winterkorn, resigned following the emissions scandal in 2015, I’m sure he didn’t expect to be defending a lawsuit himself.
A U.S. District Judge has ruled that Mr Winterkorn must defend a suit that is brought by American pension fund investors. The suit alleges that VW are guilty of not warning or informing the market/investors ‘in a timely fashion’ about the emission scandal; instead leaving investors to find out about their pension funds after the scandal had been publicised and splashed across the news.
Following the publication of VW’s emissions scandal in September 2015, the lawsuit notes that VW’s market value for shares fell by $63 billion (£52 billion).
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We’ve been made aware that Volkswagen, via their instructed solicitors dealing with the ongoing Volkswagen Emission Scandal (“dieselgate”), is refusing to cover dealers who may be losing millions as a result of the scandal.
It’s easy to see that the dealers could lose a fortune from unsold vehicles and being forced to lower prices as a result of any impact caused by the emissions scandal. It only seems fair that dealers – whether they’re general or independent dealers, or dealers who specifically only sell Volkswagen, Audi, SEAT, and Skoda vehicles – be compensated for their costs and losses.
Sadly, they’re in the same boat as the rest here in the UK, as it appears that Volkswagen UK are intent on not only refusing compensation to vehicle owners, but also to dealerships across the country too.
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Amid all the VW investigations and settlement talks, the criminal investigations may have had slightly less media. The update on the criminal side is that a former-VW employee, as the first person to face U.S. criminal charges for the VW emissions scandal, has had his sentencing delayed.
It appears that U.S. District Judge Sean Cox may have cut the engineer, James Liang, some slack as his sentencing date has been pushed back from 1 February 2017 to 3 May 2017. The strategy for doing so was highlighted in Judge Cox’s delay order to “allow more time for defendant’s cooperation in the investigation”.
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If you are looking for representation for emissions problems related to Fiat, Jaguar Land Rover, Nissan Renault, Porsche and many others you can go to the following advice pages to find out more:
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UK NISSAN RENAULT CONSUMERS MAY BE ELGIBLE FOR NO WIN, NO FEE COMPENSATION. CLICK NOW TO FIND OUT MORE.
PORSCHE INITIATED A RECALL IN EARLY 2019. FIND OUT NOW IF YOU ARE ELIGIBLE TO JOIN OUR DIESEL EMISSIONS ACTION.
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