VW Denies Compensation to European Owners of Cars Affected from 'Dieselgate' – Report

Kuala Lumpur: Automotive News has recently reported that the Volkswagen will not compensate the European owners of cars affected from the 'Dieselgate'. Instead, the automaker has decided to recall all the affected vehicles to fix the issue and taking measures to ensure that the car owners are inconvenienced as least as possible in the process.

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In the United States, Volkswagen has announced two gift cards each of worth $500 (one prepaid car that can be used anywhere and other redeemable at VW dealerships) to every owner of the rugged diesel car under its 'Goodwill Package'. The automaker will also provide three years of 24-hour roadside assistance to all the owners. However, in Europe, the car owners affected from the same 'Dieselgate' scandal only gets an assurance that they will be inconvenienced as little as possible when their vehicles are being recalled for fixes.

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Given the numbers of cars affected from ''Dieselgate' hovering around 8.5 million in Europe versus 482,000 in the United States, it seems that Volkswagen has simply chosen the smaller population for the attempt to redeem itself through its 'Goodwill Program'. But the automaker has given a couple of reasons to justify its decision.

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As reported by Automotive News, Volkswagen says that the U.S. customers with rigged cars deserve compensation because they bought a vehicle specifically advertised as a 'clean diesel.' In the U.S., customers were investing in a niche technology compared with Europe where more than half of new cars sold are Diesels. U.S. customers also pay more to run a diesel car because the diesel fuel costs more than gasoline whereas European buyers receive tax benefits and, in some countries, pay less for diesel fuel than for gasoline, the company argues.

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VW also believes that the European customers will be less inconvenienced by their rugged diesel cars because plans for an EU-wide recall of the affected cars will soon be finalized. However, in the U.S., discussions with authorities over a proposed solution are at a less advanced stage.

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