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Class action in VW scandal

Posted on 13 October, 2015
Class action in VW scandal

A class action being organised by a law firm Wellington is open for the owners of about 8,500 vehicles in New Zealand embroiled in the Volkswagen Group’s emissions scandal to join. Edward Cox, litigation partner at Gibson Sheat, says buyers of Volkswagens, Audis and Skodas in this country were duped into believing they met European emission standards, and should not be left out of pocket from the misleading and deceptive actions of others.” He adds: “We believe a group action is the best way for individual vehicle owners to hold Volkswagen to account over its actions.” Although the German company is working on a remedy to remove emissions-cheating software from affected cars powered by 1.6 and two-litre diesel engines, there are concerns that may reduce power and fuel efficiency. Cox says: “The reputation of the affected cars may now be tainted due to no fault of the owners and this could lead to a reduction in the value of the cars. Volkswagen has given no indication it is considering compensating owners for losses they may suffer.” Barrister Nicole Smith is working with Gibson Sheat firm. This means the same team has been assembled that achieved success with a group action for business owners in Tauranga affected by the grounding of the Rena on Astrolabe Reef about four years ago. Meanwhile, Volkswagen has meanwhile updated its website to disclose that 5,548 of its vehicles New Zealand are affected by the scandal. This is up from its previous estimate of 4,639. It includes 2,222 Tiguans and 1,433 Passats as well as varying numbers across six other models. It is believed 1,660 Audis and 1,328 Skodas are also caught up in New Zealand the scandal. Volkswagen NZ expects a recall to fix New Zealand-registered vehicles to take much of next year. General manager Tom Ruddenklau says the company will not comment on the law firm’s “solicitation”, although he acknowledges VW owners are free to seek help from wherever they want. “People have bought Volkwagens and they have been cheated on,” he told the NZ Herald. “They are aggrieved and disappointed, and want to know someone cares about what’s important to them. I would like to think they can come to us and our dealers. “However, if they want to get external advice and help from whoever that is – and if that helps – that’s fine. But I would like to think the way we operate as an independent distributor, by being open and honest and upfront, that their best course of action is to come and have a chat to us.” Ruddenklau didn’t comment on whether owners could ultimately expect any compensation. “Until we know what the solution will be, I would be just speculating,” he adds. “All I can say is VW globally is doing everything it can to avoid impacting the vehicles’ driveability. Our priority is making sure we keep our customers updated and get this thing fixed.” He expects a remedy to be approved by a federal agency in Germany to allow VW New Zealand to start recalls early next year. The company is also trying to trace owners through the NZTA’s database of several hundred used diesel vehicles, which may have been imported with the offending software. Gibson Sheat is inviting owners to register their details for the group action online at http://www.gibsonsheat.com/news-and-publications/latest-news/volkswagen-emissions-claims