VW settles Australia emissions cheating scandal

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SYDNEY, Sept 16, 2019 (BSS/AFP) – Volkswagen has agreed to pay up to
Aus$127 million ($87.3 million) to settle multiple class action suits brought
by Australian motorists over a diesel emissions cheating scandal, the
parties’ lawyers said Monday.

The German car giant, which owns brands ranging from luxury Audi to lower-
end Skoda, said in 2015 that 11 million diesel engines globally were
affected.

Owners of about 100,000 Australian cars will be able to seek compensation
from Volkswagen under the terms of the in-principle agreement, which the
automaker has agreed to without admitting liability and must still be
approved by the Federal Court.

“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,” said Julian Schimmel, principal
lawyer of Maurice Blackburn, the firm behind one of the class actions.

It was revealed in 2015 that more than 97,000 Volkswagen vehicles in
Australia were fitted with technology that was designed to cheat emissions
tests.

The automaker said in a statement that it views the settlements as “a
further step towards overcoming the diesel issue”, with each affected
customer expected to receive a payment of about Aus$1,400.

Volkswagen is also being sued by the Australian Competition and Consumer
Commission, with the watchdog alleging multiple breaches of the law that
could result in a hefty fine if the case succeeds in court.

The car giant previously reached multibillion-dollar settlements to
compensate American and Canadian motorists over the scandal, which has been
dubbed “dieselgate”.