Volkswagen loses German ‘dieselgate’ case

Volkswagen must pay compensation to about 60,000 owners of vehicles with rigged diesel engines in Germany, a court has ruled.

The ruling by Germany’s highest civil court, which will allow owners to return vehicles for a partial refund of the purchase price, sets a benchmark for thousands of lawsuits in the country.

The company says it will work urgently with motorists on an agreement that would see them hold on to the vehicles for a one-off compensation payment.

Volkswagen admitted in September 2015 to cheating emissions tests on diesel engines, a scandal that has cost it more than €30 billion ($53b) in regulatory fines and vehicle refits worldwide.

The company disclosed at the time it had used illegal software – or a “defeat device” – in about 11 million cars to manipulate test results.

As a result, the marque has faced a flurry of legal action worldwide and the carmaker's current and former senior employees are facing criminal charges in Germany.

Volkswagen has already settled a separate €830 million class action suit involving 235,000 German car owners.