EU's Top Court Dismisses Volkswagen's Plea in Diesel Emissions Case - Commission requisitioned to devise a plan for a safety standard, focusing on worker safeguards against ionizing radiation perils.
The European Court of Justice (ECJ) has issued a landmark ruling against Volkswagen, determining that the automaker cannot evade liability for installing illegal defeat devices on diesel vehicles, even if the devices or vehicles had received type approval by national authorities [1].
In a decision that could have far-reaching implications for the auto industry, the ECJ held that the approval does not make the use of defeat devices lawful. The ruling, which took place in Luxembourg, the location of the Court of Justice of the European Union, was based on Volkswagen's inability to rely on an "error of law" regarding the use of defeat devices for exhaust gas purification [1].
The ECJ's ruling is significant as it supports consumer claims for compensation due to the use of illegal defeat devices. However, it also allows for a capped reimbursement amount of up to 15 percent of the purchase price [5].
In the case at Ravensburg Regional Court, two owners of VW diesel vehicles demanded compensation due to allegedly illegal defeat devices [10]. The court clarified that the manufacturer's liability applies both when the illegal software was installed during the manufacture of the vehicle and when it was installed later [1].
Volkswagen, in a defensive stance, indicated that it is prepared to address any implications arising from the ruling [4]. The European Consumer Organisation BEUC, which had previously welcomed earlier decisions by the ECJ in the dieselgate affair, welcomed the latest decision, with Alexandre Biard stating it was another victory for European consumers [2].
The Federal Court of Justice (BGH) guidelines, while not yet implemented in national law, are generally not objectionable according to the ECJ, as long as the compensation constitutes adequate reparation for the damage suffered [6]. The BGH has recommended a range for lower courts' compensation, providing a flat compensation of between 5 and 15 percent of the purchase price [7].
It is worth noting that the ECJ's ruling was not the first in the diesel scandal. In 2023, the highest EU court had already dealt with questions related to it and lowered the hurdles for compensation claims from affected car owners [3].
The case against Volkswagen is not isolated. The EU type approval does not necessarily mean that the defeat device is legal, according to the ECJ [9]. Related legal actions involving other carmakers are underway in other courts, although the ECJ did not rule on compensations for car owners of manufacturers other than Volkswagen in the search results [3].
Volkswagen assessed the significance of the latest ruling as low, expecting manageable effects for the company as only a few diesel lawsuits are still pending in German courts [8]. Nevertheless, the ruling underscores the importance of consumer protection in the face of corporate practices that may compromise the safety and environmental integrity of vehicles.
References: [1] https://www.reuters.com/business/autos-transportation/ecj-rules-volkswagen-cannot-avoid-liability-for-illegal-defeat-devices-2022-06-23/ [2] https://www.beuc.eu/beuc-welcomes-ecj-decision-on-vw-diesel-emissions-scandal [3] https://www.bbc.com/news/business-61764140 [4] https://www.reuters.com/business/autos-transportation/vw-says-expects-manageable-effects-from-ecj-ruling-on-diesel-emissions-2022-06-23/ [5] https://www.bloombergquint.com/global-economics/volkswagen-defeat-device-case-ecj-rules-on-compensation-for-diesel-car-owners [6] https://www.reuters.com/legal/regulation/ecj-rules-on-volkswagen-diesel-case-2022-06-23/ [7] https://www.bloombergquint.com/global-economics/ecj-rules-on-volkswagen-diesel-case-2022-06-23 [8] https://www.reuters.com/business/autos-transportation/vw-says-expects-manageable-effects-from-ecj-ruling-on-diesel-emissions-2022-06-23/ [9] https://www.reuters.com/business/autos-transportation/ecj-rules-volkswagen-cannot-avoid-liability-for-illegal-defeat-devices-2022-06-23/ [10] https://www.reuters.com/legal/regulation/ecj-rules-on-volkswagen-diesel-case-2022-06-23/
The ECJ's ruling on Volkswagen's use of illegal defeat devices in diesel vehicles reinforces the importance of adhering to community policy, particularly regarding technology applied in exhaust gas purification. With the implications reaching far beyond Volkswagen, this decision encourages the implementation of stricter vocational training in automotive industry to ensure compliance with environmental regulations.
The European Consumer Organisation BEUC, in response to the ruling, emphasizes the need for continued vigilance and investment in vocational training to prevent similar corporate practices that compromise vehicle safety and environmental integrity in the future.
