Costs rise as VW compensation claims spread

July 20, 2016

Volkswagen Group is facing calls to extend its $15 billion dollar US compensation scheme for drivers affected by the Dieselgate scandal to Canada.

If a deal is agreed, it is likely to intensify calls for European drivers to receive a similar offer.

In the US, around 500,000 drivers were offered buyback deals and compensation after their vehicles were found to be fitted with defeat devices that cheat emissions tests.

Extending the scheme to around 100,000 Canadian drivers could cost Volkswagen an additional $2 billion, according to Frankfurter Allgemeine Zeitung.

No compensation has been offered to drivers in Europe because Volkswagen has been able to identify a fix for cars through a recall, but the firm has also warned that any financial agreement for 8 million drivers affected by the emissions crisis would be ‘overwhelming’. Autovista Intelligence analysts estimate the potential bill would reach more than €60 billion.

The compensation does not include the cost of fines from the countries involved in civil claims made against the company, which could add hundreds of millions of Euros to the final bill for the scandal.






Also in News & Insights

UPDATE: News & Insights have moved to the Autovista Group website

March 31, 2017

Our regular automotive industry News & Insights are no longer being published on the Autovista Group Market Reports website.

Instead, you can now find the latest updates at our central Autovista Group website, home to our pan-European brands including Autovista, Eurotax, Glass's and Schwacke.

To stay up to date with rapidly changing market trends, we recommend signing up to our free Autovista Group Daily Brief which delivers our daily news stories directly to your inbox.

You can still find our in depth market reports here on the Autovista Group Market Reports site. Keep checking back as we have an exciting new report due to be launched shortly!

PSA to boost UK presence in the event of a ‘hard Brexit'

March 08, 2017

UK sales flat despite upcoming road tax hike, diesel demand plummets

March 08, 2017

UK new car registrations fell annually by 0.3% in February to 83,115 units according to the SMMT, driven down by weaker demand from individuals and companies. More noticeable, however, was the 9.2% drop in demand for diesels compared to February 2016, a steeper drop than the decline in Germany...