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Euro owners want payment

Posted on 28 June, 2016

While Volkswagen owners with rigged vehicles in the US can expect a settlement of as much as $14,000, owners of the same vehicles in Europe will only get a software update. Unlike the 500,000 owners in the US, the 8.5 million affected customers are likely to only get an hour-long visit to their dealership to have their engines fixed with a tube regulating air flow or a software update. The disparity stems from several factors, including the lack of US-style class-action lawsuits to approved fixes which were deemed insufficient for American owners. The lack of lawsuits presents a major disadvantage for European customers, as there are few mechanisms to bundle complaints. Owners then have to file individual claims in local courts, undermining their leverage in negotiations with Volkswagen. Laurent Mercie, a French lawyer who has filed individual claims against Volkswagen, says: “U.S. legal principles are very different from ours. There's a natural tendency to want to transpose what happens there to here. Unfortunately, it's not possible.” Environmental rules in the European Union are also less strict and don’t explicitly ban defeat devices, allowing them to be used to protect the car’s engine. However, customers who bought virtually identical vehicles with similar promises about emissions levels are angry at the unequal treatment. Monique Goyens, director general of the European Consumer Organisation, stated: “Consumers have been massively misled by Volkswagen, and this settlement in the U.S. recognizes the damage suffered by car drivers. It is inconceivable that consumers in the EU get treated differently. Volkswagen would be well-advised to offer a similar settlement to EU consumers.” Members of the European Consumer Organisation in Italy, Spain, Belgium and Austria are filing lawsuits against Volkswagen as the automaker refused to respond to repeated calls to compensate European car owners. However, Volkswagen has stressed that European owners will get faster repairs than those in the US. Eric Felber, a spokesperson for Volkswagen, says: “We take care of each customer. Customers in the U.S. probably have to wait longer for a fix approved by the authorities than in most other countries. The disadvantages U.S. customers may have to bear are significantly graver and thus not comparable.” While he didn’t provide details, Felber says that Volkswagen is working on a package for all markets and customers. However, the lack of compensation is likely to lead to lawsuits from European customers who feel they have to go through the courts to get a similar deal.