EU Court Of Justice Rules Volkswagen Must Be Held Liable For Emission Cheating Devices

The European Court of Justice recently ruled that car manufacturers such as Volkswagen must bear legal responsibility for using illegal emission cheating devices (such as temperature-sensitive emission software) even if the vehicles comply with EU standards; vehicle compliance does not mean that the technical methods are legal.

The case brought before the Court of Justice of the European Union originated from two lawsuits in Germany, involving Volkswagen diesel vehicles equipped with emission defeat devices either at the time of manufacture or during subsequent software updates.

Image source: Volkswagen

The emission cheating device installed in the vehicle reduces exhaust gas recirculation when the ambient temperature is below 10 degrees Celsius, causing the engine's nitrogen oxide emissions to exceed legal limits. The European Union Court clearly rejected Volkswagen's claim that "this technology should be permitted or could have been approved by national regulatory authorities."

The European Union’s highest court stated that the compensation Volkswagen pays to car buyers can be reduced according to the age of the vehicle or capped at 15% of the purchase price, but the compensation amount must adequately reflect the damage caused by Volkswagen’s emissions cheating devices.

Volkswagen Group responded: "The ruling by the EU court has limited impact on the company, as there are very few unresolved diesel-related lawsuits remaining in German courts." The German automaker added: "In our view, today's EU court ruling will not change this situation."

However, this ruling undoubtedly exacerbates the negative image of Volkswagen associated with the "Dieselgate" scandal, potentially affecting consumer trust and brand loyalty, and may impact the company's sales, especially in markets such as the European Union where consumers have a strong awareness of environmental protection. These markets have very strict scrutiny of emission compliance, and the judgment also highlights the necessity for companies to strictly adhere to emission regulations.

An emission defeat device refers to a tool or software capable of altering a vehicle's emission data. Such technological means have sparked legal disputes over whether automobile manufacturers are using these devices to conceal the true levels of pollution.

Automakers claim that these devices are activated only at specific temperatures in order to protect the engine and comply with legal requirements.

In 2015, Volkswagen was exposed for concealing the excessive emission of toxic pollutants from its diesel vehicles. This scandal led to the resignation of several senior executives of the Volkswagen Group and triggered thousands of regulatory investigations and lawsuits.