A comparison was obviously within reach: According to its own statements, VW had negotiated a comparison of 830 million euros for hundreds of thousands of customers. The deal failed because of consumer protection.
Negotiations for a settlement for hundreds of thousands of VW diesel customers have failed. Previously, the group had agreed with the Federal Consumer Association (vzbv) on payments for hundreds of thousands of VW customers totaling 830 million euros.
This solution failed because the lawyers of the consumer advocates insisted until the end of a lump sum payment of 50 million euros for the settlement, said Volkswagen.
The vzbv represents diesel drivers in the proceedings for the model declaratory action, who demand compensation for their vehicles with excessive emissions. The association initially did not comment, but announced a press statement for the early afternoon.
“Claim without concrete evidence of performance”
The car company announced that there was no sufficiently concrete evidence of what the lawyers’ services should be billed with the requested amount. However, a payment without a sufficiently concrete proof of performance or without a legal reason is impossible for Volkswagen. The VW board now wants to advise on the next steps.
In early January, VW and consumer advocates had started negotiations to reach an out-of-court agreement. Both sides called “the common goal of a pragmatic solution in the interests of the customers”. VW had been skeptical about this for a long time.
Court proceedings have been ongoing since September
VW and vzbv have been arguing with the Braunschweig Higher Regional Court since the end of September about compensation for car owners affected by the diesel scandal. Around 440,000 VW customers have joined the model declaratory action at the Braunschweig Higher Regional Court.
The consumer advocates want to be judicially determined that the car company has deliberately and immorally damaged diesel buyers and therefore has to pay damages. VW admitted in September 2015 that it had installed illegal software in millions of vehicles of its brands worldwide. This only lowered the emission of nitrogen oxides on the test bench, but not in everyday traffic.
VW denies loss of value
Volkswagen always argued that customers had not suffered any damage, since after software updates all vehicles could be used in traffic and were safe. Several reports had also confirmed that the vehicles had not suffered a loss in value due to the diesel issue.
Already at the second trial in mid-November, the OLG suggested that the parties to the dispute should be compared – Volkswagen agreed to this in early January.