Volkswagen faces possibility of getting sued across EU by its customers

The carmaker admitted in 2015 to using illegal software to cheat U.S. diesel engine tests, a scandal that has cost it more than $30 billion in vehicle refits, fines and provisions.

A recent verdict by the EU court might open the gates to multiple suites against the German carmaker Volkswagen across EU.

Court of Justice of the European Union ruled on Thursday that, EU consumers should be able to sue Volkswagen VOWG.p.DE in their national courts if they have bought cars with emission cheat devices installed.

The case came to the EU court after an Austrian court handling a claim by the Austrian consumer association VKI on behalf of 574 owners of manipulated vehicles had sought to establish if it had jurisdiction on the matter.

The Court of Justice said that under EU law court applicants should, in principle, sue where the defendant is domiciled.

However, in cases of tort there was also the possibility of taking action in the place where the damage had occurred.

The EU court said that the damage occurred only at the time when the vehicles were purchased as they were acquired at a price higher than their actual value.

The VKI wants compensation for the difference between the price consumers paid for vehicles, and the value of a manipulated vehicle.

The carmaker admitted in 2015 to using illegal software to cheat U.S. diesel engine tests, a scandal that has cost it more than $30 billion in vehicle refits, fines and provisions.

Nearly all U.S. owners of affected cars agreed to take part in a $25 billion settlement in 2016 in the United States. The carmaker is in talks in Germany to settle a class-action lawsuit there.


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