Skip to main content

American Style Compensation Unlikely in Europe Says Muller

Last week Elzbieta Bienkowska argued that Volkswagen should “voluntarily provide European car owners with compensation that is comparable to what it is paying US customers,” and VW CEO Mattias Muller has said that would not be possible.

“Volkswagen is solid financially, but you don’t have to be a mathematician to see that damage payments in some arbitrary amount would even be too much for Volkswagen to cope with,” Muller told German newspaper Welt am Sonntag.

Earlier this year Volkswagen set aside $18 billion to pay for the diesel scandal, and following the $15 billion settlement that Volkswagen and government regulators agreed to last week, not enough is left for similar compensation.

Furthermore, The Wall Street Journal estimates that compensation comparable to that paid in the US would cost the Wolfsburg company a minimum of €40 billion (about $45 billion). That’s because, there are roughly 9 million TDI owners in the Europe, as compared to only about 475,000 in the US.

On top of that, emissions laws in the states are much tougher than they are in Europe, making a fix simpler and the American punishment more severe.

“The legal basis in Europe is different from that in America. In Europe, consumer law and environmental law are irrelevant,” Ferdinand Dudenhöffer, head of the Center for Automotive Research in Duisburg told the Wall Street Journal.

[source]

The post American Style Compensation Unlikely in Europe Says Muller appeared first on VWVortex.



from VWVortex http://ift.tt/29tGNSR
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Review: Saying Goodbye to the CC V6

For all its size and its global reach, Volkswagen is still, in many ways, a deeply human company. There was, for instance, the Bugatti Veyron an ego project if ever there was one. Then the purchase of Ducati, a move most called folly. And then there was the Phaeton, the Volkswagen that most folks can’t afford. Not only were these moves all strange, I’m sure that they made VW’s accountants furious. None of them made good business sense, but they were all deeply interesting and they all are evidence of the heart that beats at the center of VW. Among these follies is the CC, a car that everyone agrees is rakishly handsome, but that no one really wanted to buy. The car couldn’t last, but the world is brighter for its having been in it. With the approach debut of the Arteon, it seems like a good time to look back on its sadly departing predecessor. The version I drove, because I live in Canada, is a V6 Wolfsburg Edition, which apparently isn’t available in the States. Nor is the V6, not as...
Post a Comment
Read more

Mitsubishi admits it lied about MPG ratings for all vehicles in Japan

Filed under: Government/Legal , Green , Mitsubishi , Fuel Efficiency , Japan Mitsubishi says its shady fuel-economy test practices may have been used on all vehicles it sells and has sold in Japan. Continue reading Mitsubishi admits it lied about MPG ratings for all vehicles in Japan Mitsubishi admits it lied about MPG ratings for all vehicles in Japan originally appeared on Autoblog on Wed, 11 May 2016 12:36:00 EDT. Please see our terms for use of feeds . Permalink  |  Email this  |  Comments from Autoblog Volkswagen http://ift.tt/21X3bHv
Post a Comment
Read more

More 3.0-Liter TDI Settlement Details Expected by January 31

Volkswagen and the TDI Plaintiff’s Steering Committee were in court today for another status conference following the agreement in principal reached earlier this week. Little new information was given at the conference held before Judge Charles Breyer today, but the court ordered the parties to develop a formal settlement agreement, class action notices, and a class notice plan by January 31, 2017. For now, though, owners still don’t know how much to expect in compensation. Elizabeth Cabraser, lead Counsel for the Plaintiff’s Steering Committee reaffirmed in a statement today that the compensation would be “substantial.” The potential cost to Volkswagen is widely reported to exceed $1 billion, though, with an additional $225 million going into an environmental trust to help offset excess emissions. Buy back offers are still only expected for the oldest 20,000 of the roughly 80,000 VW Group vehicles sold in America with the 3.0-liter TDI engine. Those vehicles are mostly SUVs, like ...
Post a Comment
Read more