VW to pay up to $127m to Aussie owners

After a legal battle that has dragged on for years, Volkswagen has agreed to pay out Australian customers affected by the Dieselgate scandal.

Volkswagen will pay Australian customers around $1200 in compensation following the ‘dieselgate’ emissions scandal. AFP PHOTO / JOHN MACDOUGALL

Volkswagen has agreed to pay millions 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.

Maurice Blackburn Lawyers says VW will pay a minimum of $87 million and up to $127 million to consumers, plus “significant” legal fees.

Exact figures are difficult to pin down as the amount paid will very from car to car, and some people have already opted out of the class action.

Current and former owners of affected vehicles, such as the Volkswagen Golf and Audi Q5, are still eligible to join the class action, with payments likely to be made early next year.

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.

Volkswagen 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.”

Volkswagen 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.”

This story originally estimated that $140m would be paid to consumers, based on VW’s figures of about $1400 paid to 100,000 cars affected by the issue.