Volkswagen Settles UK Dieselgate Claims for £193 Million

In May 2022, Volkswagen agreed to pay £193 million to settle 91,000 legal claims in England and Wales linked to the "dieselgate" emissions scandal. Claimants received average payments of more than £2,100 each (The Guardian).

The Settlement

The claims alleged that cars made by the Volkswagen Group — including its Audi, Seat and Skoda brands — emitted more nitrogen dioxide than the company had claimed. The High Court in London dismissed the proceedings after the settlement was reached.

In addition to the £193 million paid to claimants, VW also paid an amount reported to be in the tens of millions of pounds to cover legal costs and other fees. Volkswagen did not admit any wrongdoing as part of the settlement, stating it was the "prudent course of action commercially" to avoid the cost of a six-month trial and possible appeals (The Guardian).

Reaction from Legal Teams

Tony Winterburn, a partner at PGMBM, said: "This is a good day for the claimants and is the culmination of five years of hard-fought litigation."

Shazia Yamin, a partner at Leigh Day, said: "The settlement of this case is important because it was the first case to get going and the first to be settled. It’s a big moment for consumers. It’s a really important milestone that when consumers join these claims there can be something at the end" (The Guardian).

The Wider Scandal

The dieselgate scandal erupted in 2015 after Volkswagen was found to have installed illegal defeat devices to cheat emissions tests. It has become one of the costliest corporate scandals in history. Globally, the company has spent more than €30 billion (£26 billion) in legal fees and payouts, including a $15 billion (£12 billion) settlement in the US (The Guardian).

Philip Haarmann, VW’s chief legal officer, said at the time: "The Volkswagen Group is pleased that we have been able to conclude this long running litigation in England and Wales. The settlement is another important milestone as the Volkswagen Group continues to move beyond the deeply regrettable events leading up to September 2015."

What Followed

Since the VW settlement, a series of other carmakers have faced litigation for similar claims in the UK, including Mercedes-Benz, BMW, Jaguar Land Rover, Stellantis, Nissan, Renault, Ford and Volvo. The total number of UK claimants across all manufacturers is reported to be well over 1 million (The Guardian).

Sources

• The Guardian — Volkswagen settles initial ‘dieselgate’ claims with £193m payout (May 2022)