Is VW Australia playing a sleight-of-hand?

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!

“Dirty tricks”

According to documents filed in a case management hearing on 22^nd February 2017, the German automaker allegedly used “bullying tactics” and “provided inaccurate information” to their customers.

Lawyers representing an estimated 100,000 VW owners said that owners have been forced to sign waiver documents “purporting to waive all their legal rights” and “wrongfully” telling customers that their vehicles will not be covered under the manufacturer’s guarantee if they refuse to get the emissions “fix” done.

Recalls in line with ACCC consultation

VW protests that there hasn’t been any ‘bad faith’ in this process, denying the claims that they’ve asked vehicle owners to sign waivers. The German automaker asserts that the recalls are in line with the consultation made by the Australian Competition and Consumer Commission (ACCC).

But can we trust VW given their reputation for alleged deceit?

ACCC’s proceedings against VW Australia

The fact that the ACCC has initiated legal proceedings in the Federal Court of Australia against VW could infer and highlight the automaker’s wrongdoing. The Australian competition authority alleged that VW engaged in ‘misleading or deceptive conduct…in relation to diesel vehicle emission claims’.

VW remain adamant that they haven’t been pressurising their customers. A spokesperson for VW released a statement to News Corp Australia saying:

“The recall is strongly recommended by VW but is voluntary – and the owner waives no legal rights if they choose to refuse it.”

Recall procedure

As with VW U.K., VW Australia sends out communications via email and post to notify affected vehicle owners that they’re eligible for the emissions “fix”; inviting them to make an appointment with the nearest dealer to get the repair work done. VW Australia reiterates that the recall is voluntary:

“…the communications with customers inviting them to come to a dealership and have the update implemented voluntarily have been finalised in consultation with the ACCC.”

Maurice Blackburn’s class action

A class action that is headed by law firm Maurice Blackburn isn’t satisfied by the automaker’s undertaking, highlighting the lack of remorse they have for their wrongdoing, saying: “…VW seems to be completely unrepentant”.

Jason Geisker, a lawyer who heads the class action in Australia, is even more unforgiving, blaming the automaker’s lack of transparency. Mr Geisker notes that the automaker has had copious opportunities to explain “…why it set out to mislead regulators and approval authorities about the real emissions…”; but have yet to do so.

Adverse effects

Even with 13,000 vehicles having had the emissions “fix”, it doesn’t guarantee that there won’t be any adverse effects following the “fix”. Nonetheless, VW said that the “fix” has “been confirmed by the Australian Government as conforming to relevant emissions standards”.

From what we’ve been seeing, a lot of our own clients are having issues after the emissions “fix” in the U.K. Multiple problems with vehicles have been identified, with some owners saying they wished that they had never undertaken the upgrade in the first place.

Though it may “conform” to emissions standards, VW Australia has kept sneakily quiet about any potential effects that may arise following the “fix”. By offering the “fix”, VW Australia can argue – in defence – that they’ve tried to make amends/offer redress to affected owners, so then lawyers and/or agencies are prevented from arguing that the German automaker has done nothing to provide redress for their customers. Was that their tactic all along?