Why Your Dieselcar Will Be Decommissioned - A Reboot Of 2015’ Dieselgate?
When Volkswagen admitted to having installed illegal defeat devices in its 2.0 liter diesel engines towards the end of 2015, this triggered an international wave of public outrage. And rightly so, because Volkswagen deceived various approval authorities and buyers around the world. Around 11 million vehicles were affected worldwide, which, according to the tests of the approval authorities, complied with all environmental specifications, but in fact emitted considerably more exhaust gases and thus caused lasting damage to the environment. In the U.S. alone, Volkswagen paid more than $18 billion to settle any legal disputes.
Software updates by automakers also illegal defeat devices
A VW Touareg with a 3.0 liter diesel engine affected by Dieselgate
In Europe, on the other hand, Volkswagen, with the cooperation of the German Federal Motor Transport Authority, tried to deal with the scandal by developing so-called software updates. Software updates that, from a technical point of view, lead to higher fuel consumption and wear and tear and thus no longer guarantee the quality and service life to which Volkswagen is accustomed. In addition, the software updates once again contained defeat devices that now functioned differently. The ECJ Advocate General Rantos had already called these so-called thermal windows illegal in previous proceedings. Now a new legal escalation stage is brewing in the dispute over the software updates. It is about nothing more than the complete restart of the diesel scandal regarding the millionfold sold 2.0 liter diesel engines from the house of Volkswagen.
The reason for this is that in the previous proceedings in which the software updates were the subject of dispute, it was mostly only a matter of claims for damages by buyers. The approval of the German Federal Motor Transport Authority with regard to the software updates, on the other hand, remained in force. This could now change. This is because the environmental association “Deutsche Umwelthilfe” filed an appeal against the approval of the Federal Motor Transport Authority shortly after it was granted in 2016. The legal dispute ultimately ended up before a German administrative court, which, however, expressed considerable doubts as to whether the association was even authorized to bring an action against the approval. The court brought the matter before the European Court of Justice (ECJ) because of points of contact with EU law.
Diesel vehicles with software updates could be immobilized.
In the proceedings before the ECJ, Advocate General Rantos in his opinion now saw such a legal right of action under European law. According to this, under international and European law (especially after ratification of the Aarhus Convention), environmental associations must be given the opportunity to take action against projects and permits issued by the state. As a rule, the ECJ follows these requests.
Should such a right of action be available as a result, Volkswagen AG must prepare for a rough time. Because if the German administrative court overturns the approval (which seems to be the case according to the statements made so far by the Advocate General and the administrative court), Volkswagen would once again have to recall hundreds of thousands of vehicles throughout Europe. Otherwise, they would have to be shut down by the authorities.
The installation of the software update could give rise to new claims for damages.
In addition, it would then be likely that the installation of the software updates was once again a fraudulent misrepresentation, so that buyers would not use their legal means to get rid of the affected vehicles. This would again give rise to claims for damages that are subject to their own statute of limitations. Volkswagen will then have to fight renewed waves of lawsuits from cars, some of which are more than ten years old.