Volkswagen will not be fined by German authorities after all, but only if it manages to fix all the vehicles it sold with a defeat device. Germany's Transport Ministry spokesperson, Ingo Strater, announced the decision today, but not all are happy with the conclusion.
Volkswagen will have to fix around 2.4 million vehicles sold in its homeland, but local media and politicians in the opposition are dissatisfied with the lack of sanctions put on the corporation.
As Germany’s Bild notes, Volkswagen is not giving its fellow citizens the same treatment it applies to American customers.
Meanwhile, Oliver Krischer, a member of the Green Party, currently in the opposition and in charge of an investigation committee focusing on Volkswagen, is infuriated that Volkswagen does not pay any penalty in Germany for its actions.
On the other hand, American owners of Volkswagen Group vehicles that have been affected by the Dieselgate scandal will receive compensation, and some of them will be offered a buy-back from the company.
The settlement deal will have a cost of approximately $15.3 billion, but a similar offer in Germany would risk bringing the end of Volkswagen if the payments were matched to the American market. As Automotive News notes, the difference between American customers and EU citizens that bought vehicles from the Volkswagen Group lies in consumer protection laws.
In the case of the USA, class-action lawsuits allow customers to form alliances against corporations and have a better prospect of landing a settlement if they have been sold a defective product. In the case of European customers, smaller class-action lawsuits are possible, but they do not have the same leverage as in the USA.
Furthermore, European legislation allows automakers to switch off emission control devices on internal combustion engines if it is required for the protection of the power plant. Some automakers have reportedly abused this measure.
We must also note that other EU states still have the possibility to fine Volkswagen AG for its actions, as Germany is not the only country to make decisions in the EU.
As Germany’s Bild notes, Volkswagen is not giving its fellow citizens the same treatment it applies to American customers.
Meanwhile, Oliver Krischer, a member of the Green Party, currently in the opposition and in charge of an investigation committee focusing on Volkswagen, is infuriated that Volkswagen does not pay any penalty in Germany for its actions.
On the other hand, American owners of Volkswagen Group vehicles that have been affected by the Dieselgate scandal will receive compensation, and some of them will be offered a buy-back from the company.
The settlement deal will have a cost of approximately $15.3 billion, but a similar offer in Germany would risk bringing the end of Volkswagen if the payments were matched to the American market. As Automotive News notes, the difference between American customers and EU citizens that bought vehicles from the Volkswagen Group lies in consumer protection laws.
In the case of the USA, class-action lawsuits allow customers to form alliances against corporations and have a better prospect of landing a settlement if they have been sold a defective product. In the case of European customers, smaller class-action lawsuits are possible, but they do not have the same leverage as in the USA.
Furthermore, European legislation allows automakers to switch off emission control devices on internal combustion engines if it is required for the protection of the power plant. Some automakers have reportedly abused this measure.
We must also note that other EU states still have the possibility to fine Volkswagen AG for its actions, as Germany is not the only country to make decisions in the EU.