Dieselgate: European Court ruling paves way for further compensation

Dieselgate: European Court ruling paves way for further compensation
Volkswagen stand at Brussels Motor Show 2025. Credit: Belga

A recent ruling by the EU Court of Justice provides new grounds for claiming damages against German car manufacturer Volkswagen over diesel engine manipulation.

Volkswagen has already compensated buyers of the diesel engines which only met emission standards in lab settings due to software manipulation.

The current case involves a different type of software, installed at the factory or through updates, which reduced emissions only at optimal external temperatures.

Two buyers have taken legal action in Germany, seeking further compensation because their vehicles are allegedly equipped with what they claim is unlawful software, prompting several questions to the EU Court of Justice.

The software, known as the "temperature window," limits exhaust gas recirculation when temperatures drop below, for instance, 10°C, leading to increased nitrogen oxide emissions outside ideal conditions.

The Court ruled that a car manufacturer cannot be absolved simply because the vehicle or its parts received European approval.

The Court clarified that the manufacturer’s liability applies whether the illicit defeat device was installed during production or later.

Furthermore, EU law does not prohibit deducting from compensation the benefit derived from using the vehicle, or capping indemnity at 15% of the vehicle’s purchase price.

The Court emphasised, however, that any compensation must adequately redress the harm suffered.

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