The Court of Justice of the European Union (EUJ) ended one of the prolonged debates sparked by the dieselgate scandal by upholding the right of those affected to seek compensation from the manufacturer for installing a device that manipulated a vehicle’s emissions data.
The ruling resolves a case involving a German citizen who faced Mercedes-Benz after purchasing a vehicle equipped with a device that falsified its emissions. The buyer brought the matter to the Ravensburg District Civil and Criminal Court, which referred the dispute to the European Court to decide whether the plaintiff is entitled to compensation and, if so, how the amount should be calculated.
Consequences and amount of compensation
According to the decision, anyone who buys a vehicle fitted with an illegal tampering device has the right to be compensated by the automaker. The judgment confirms that European law protects the private interests of the vehicle purchaser when a prohibited deactivation device is installed, acting to safeguard the buyer from the manufacturer’s actions.
European law thus establishes a link between the vehicle manufacturer and its buyer with the aim of ensuring the buyer that the vehicle complies with EU requirements. Member States must guarantee the buyer’s right to seek compensation from the manufacturer.
The ruling clarifies that the compensation amount is determined by national provisions. It sets criteria for calculating the award while avoiding obstacles that would render compensation ineffective or unreasonably difficult to obtain. It also urges national authorities to prevent unjust enrichment of beneficiaries.
Dieselgate, the eight-year debate
The dieselgate saga emerged publicly in 2015 when the United States Environmental Protection Agency and the California Air Resources Board accused Volkswagen of using an illegal device to reduce emissions in diesel vehicles during homologation tests. The agencies cited a West Virginia University study conducted between 2012 and 2015 involving Volkswagen and BMW models.
<pVolkswagen acknowledged that 11 million cars were affected and could emit up to 40 times less than permitted nitrogen oxide levels. Affected engines included 1.2, 1.6, 2.0 and 3.0 liter TDI units across multiple brands such as Volkswagen, Audi, Seat, Porsche, and Skoda.
From that moment, a broad legal process unfolded, with more than 100 reviews requested by the European Commission as milestones. In the European Union, 8.5 million vehicles were repaired, and the emissions-control system was removed. The United States paid billions in 2016 to compensate owners, while German prosecutors imposed penalties in 2018 for manipulation of emissions. Investors faced losses totaling billions, and several executives, including the group’s former chief, were scrutinized for their involvement.
By 2021, after years of litigation, a notable case in Spain saw the Volkswagen Group ordered to recognize deception and compensate affected consumers with 3,000 euros per person, totaling around 16.33 million euros. The German group appealed that decision, and similar verdicts appeared in other countries, including Italy.
Other signs of emissions manipulation
Beyond Volkswagen, other automakers faced accusations of using illegal devices to influence emissions testing. Among them, the FCA Group, now part of Stellantis after a merger with PSA, agreed to pay more than 500 million dollars in fines and damages in the United States in 2019. Mercedes-Benz AG, now part of Daimler, agreed to penalties exceeding 1.5 billion dollars in 2019. Other brands such as Suzuki, Mitsubishi, and Ford were cited for problems in emissions testing, with penalties imposed in some cases but not all resulting in a conviction for manipulation.
Additional attention has been drawn to General Motors and Renault Group. In those cases, authorities claimed violations, but no final verdict or clear conclusion has been reached. Renault has stated its willingness to cooperate with investigations and has denied some of the accusations brought by authorities in early 2021.