Volkswagen Group gives indication of a final settlement in the U.S. over the Car Emissions Scandal: but negotiations remain ongoing

The big news back in April this year was that VW would reach a final settlement in the U.S, and Dietmar Voggenreiter, Audi’s global head of sales and marketing, has discussed that a ‘final’ settlement may well be on the table for this month or early November.

VW’s massive payout comes from them cheating emissions scandal that emerged in September 2015 when they were found to be using so-called ‘defeat devices’ which affected 11 million vehicles worldwide. VW have (in a fashion) admitted to cheating the tests using software that could switch off emissions controls when vehicles were not being tested.

Since then, VW U.S. has decided to make settlement payments to their affected customers.

Settlement claims back in April 2016

What we can say for sure is that VW agreed on setting aside some $18.2 billion to cover the costs of compensating the victims in America. Dubbed ‘one of the biggest automotive scandals in modern times‘, the German car manufacturing company has already seen a financial loss and a 12% year-on-year drop in profits.

The U.S. district judge Charles Breyer set the deadline for June 21^st this year, however the deadline was extended by a week after spanners were thrown into the works following a ‘complex agreement’. The settlement which was announced in April this year offered the affected vehicle owners the choice between returning or repairing the vehicle as well as providing financial redress to the affected vehicle owners. On top of that, the settlement includes funds for promoting a ‘greener automotive technology’ and for reducing emissions.

Will this really be a final settlement?

Voggenreiter is optimistic that there will be a final settlement as early as this month, as he believes the VW Group is in “really good discussions” with the U.S. authorities (as reported in the AutoNews).

It is unbelievable that the VW Group in the U.S. have negotiated sums, but there is yet to be any settlement talks or dates publicised to compensate the millions of owners here in the UK. By publicising the date in the U.S., the VW Group may be giving out false hope and causing further distress and annoyance to millions of vehicle owners worldwide where they feel that the issue remains unresolved in their country with no offers of compensation being made – like our UK clients, for example.

However, the technical solutions that Voggenreiter speaks of remain vague, and do not imply any concrete evidence that there will be an end to the negotiations in the U.S. This could be because the U.S. authorities may not be satisfied with the settlement offer that the VW Group is offering, or satisfied with the outcome of the recall repairs.

The financial penalties may not stop there for VW. Along with compensation to the victims, VW are expected to pay out fines for breaching the Clean Air Act and various other Consumer and Environmental Laws across the pond.

Will this be the end?

VW U.S.’s more proactive attitude perhaps shows that they are willing to compensate victims. It remains puzzling and frustrating as to why VW’s UK customers have been denied compensation when they have been victims of the same scandal. Yet, VW in the U.S. seem to be in advanced negotiations for settling with their American customers.

So now, let us help you with your claim. Please call us today if you have been affected by the VW Car Emissions Scandal. With experience in group action claims, including the PIP Breast Implants Scandal, we can fight against the corporate giants and we won’t be backing down!