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Volkswagen Australia to pay out Aussie dieselgate customers

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Volkswagen has agreed to pay up to $140 million in compensation to customers affected by its diesel emissions scandal under a class action settlement submitted to Federal Court.

Motorists who bought diesel-powered Volkswagen, Skoda and Audi vehicles affected by the issue can get cash settlements.

Volkswagen said about 100,000 vehicles with 2.0-litre “EA189” TDI engines were sold in Australia, and that customers are eligible to receive about $1400 each.

Customers have complained about diminished resale value following the manufacturers’s diesel emissions cheating scandal, along with fuel consumption that does not match advertised figures.

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media_cameraVolkswagen has agreed to settle out of court with customers over Dieselgate. Photo: AFP

A statement released by Volkswagen said: “this is a significant step towards fully resolving the diesel lawsuits in Australia, subject to approval by the Federal Court of Australia”.

Audi has been contacted for comment.

Carmakers faced a number of class action suits relating to the diesel issue, including one led by Maurice Blackburn Lawyers.

Julian Schimmel, principal lawyer for the firm, said the settlement was a significant victory for motorists”.

“This is an important step in providing a measure of justice and redress to the thousands of Australian motorists who claim they were financially impacted by the diesel emissions issue,” he said.

Volkswagen owner Alister Dalton, the lead plaintiff in Maurice Blackburn’s case against Volkswagen, said: “it’s pleasing there will finally be some closure and a resolution for thousands of Australians”.

“It’s important that it forces some recognition from VW that there was a serious issue they had to face up to and deal with here in Australia regarding their vehicles.”

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media_cameraVolkswagen and Audi customers Alister Dalton and Robyn Richardson participated in the ‘dieselgate’ class action.

Volkswagen said full settlement of the case, including payments approved by the Federal Court, is likely.

It said the settlement is on a “no-admissions basis” and that civil action pursued by the ACCC is “close to finalisation”.

“A resolution between the parties is expected shortly,” a statement from the manufacturer said.

“The details are confidential at this time.”

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A look at the most popular models for Aussie mums and dads, not corporate and government fleets.

Originally published as VW to pay out $140m to Aussie owners

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