Environmental organisation wins at the European Court of Justice: Soon millions of diesel vehicles may have to be decommissioned or technically upgraded.

This ruling had long been expected by the environmental organisation “Deutsche Umwelthilfe”. It is about nothing more and less than the approval of the software updates that were installed on millions of diesel vehicles of the Volkswagen Group (i.e. also Audi, Skoda Seat, etc.) after the Dieselgate scandal came to light. After millions of diesel car buyers in the USA had been generously compensated, the Volkswagen Group was stingy with compensation in Europe.

Software update is also illegal cheat software

A simple and technically inexpensive solution had to be found at the expense of consumers. Volkswagen worked out this solution with the help of the German government in the form of the “Kraftfahrtbundesamt”. By installing "software updates", the diesel vehicles were supposed to comply again with the exhaust emission regulations stipulated throughout Europe. While Volkswagen developed this software and installed it on the cars, the German authorities approved it.

In fact, however, these software updates were only further illegal defeat devices (so-called thermal windows). In other words, with the knowledge and help of the German authorities, one "cheat software" was exchanged for another. The actual high emission values of the vehicles, however, changed little. The ECJ now clearly stated that this cheat software is illegal (ECJ C-873/19).

However, it did not leave it at that: it gave the environmental organisation a right to sue against the approval of the software update by the German Federal Motor Transport Authority. Such a right of action was rejected in the original case under national German law by the originally competent German court. However, due to its connection to European law, it referred the case to the ECJ. The latter clarified that under European law the environmental organisation must have the right to bring an action against the permission in environmental matters.

Revocation of the approval for the software update is very likely.

Now the German court must decide on the suit. However, it will be very difficult for the German court to dismiss the case. The ECJ's guidance to the court is too clear on the fact that the updates installed on the vehicles are themselves illegal defeat devices.

The decision of the ECJ and the pending decision of the German court have far-reaching consequences. This is because the approval of the German Federal Motor Transport Authority for road clearance applies to the entire EU economic area and therefore affects all vehicles that have received a software update due to Dieselgate. Millions of vehicles would then either have to be technically retrofitted to obtain the permit. Otherwise, millions of vehicles are threatened with decommissioning.

Whether the Volkswagen Group or other German car manufacturers that worked with similar software will take this as an opportunity to compensate consumers fairly in order to draw a line under the scandal is highly doubtful. Even after the ruling, the German Federal Motor Transport Authority and Volkswagen retreated to the position that they had done nothing wrong with the software update.

As a consumer and affected party, there is nothing left to do but take legal action against the Volkswagen Group. At least the current ECJ ruling should have greatly improved the chances of this happening.

If you have a vehicle affected by Dieselgate, click here for more information.