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VW back in Federal Court on Thursday | Dieselgate
6 July 2016 by
Joshua Dowling
· CarsGuide
VW Australia back in Federal Court on Thursday over “dieselgate”, compensation still under a cloud
Embattled German car maker Volkswagen is about to make its fourth appearance in Federal Court over “dieselgate”.
Volkswagen will be back in Federal Court in Sydney on Thursday to face a class action lawsuit over the diesel emissions scandal -- after being ordered by the judge to have experts fly to Australia to brief the legal team representing almost 100,000 customers.
Volkswagen has consistently said owners of cars with diesel engines that cheat emissions tests are not entitled to compensation because Australia has different regulations to the US, where 470,000 owners last week were awarded about $US5000 each.
Judge Foster, who is hearing the case in Australia, blasted Volkswagen’s legal team at the previous April hearing because the company was yet to provide critical information, such as the true levels of emissions from the affected VW diesel cars in real-world driving conditions.
Volkswagen “obviously think [Australia] is some kind of backwater, even though it’s a well established democracy with a good judicial system,” Judge Foster told the hearing in April. “So if they think that, they’re about to get an enormous shock.”
VW was supposed to provide a technical document to explain how the exhaust gas recirculation system worked, and provide a report on the recall fix.
At the centre of the dispute is the difference in the emissions of certain VW diesel cars in test conditions (from which official fuel economy and emissions ratings are derived) and when the emissions system is disabled.
Volkswagen has admitted fitting so-called “defeat devices” to more than 11 million cars globally and is now in the process of recalling them for upgrades and software changes. Approximately 100,000 cars in Australia are affected.
Thursday’s meeting in Federal Court will be VW’s fourth appearance, after hearings in November and December 2015 and in April 2016.
In the April hearing VW was supposed to provide a technical document to explain how the exhaust gas recirculation system worked, and provide a report on the recall fix.
Since then, in a three-day meeting in early June, a Volkswagen diesel expert from Germany met with independent specialists from Los Angeles and Australia to present to legal teams representing both sides.
Volkswagen has changed legal teams since the last hearing, switching from Henry Davis York and appointing Clayton Utz.
The class action is being jointly undertaken by Bannister Law and Maurice Blackburn Lawyers.
Because it is an open class action, even VW diesel owners who have not signed up for the case will still receive a benefit if one is awarded.
No findings are expected on Thursday as it is a directions hearing, but News Corp Australia understands the legal team representing VW owners is still seeking further information from the car maker.
Last month, Volkswagen Australia boss Michael Bartsch, said it was “difficult to compare the Australian matters with the situations faced elsewhere in the world”.
“Emission regulations and vehicle standards vary from country to country,” said Mr Bartsch. “We believe that the best outcome for customers is the simple software solution.”
Mr Bartsch said the company is “committed to resolving the diesel matter … quickly and efficiently”.
“We recognise the need to regain (customer) trust and we are doing everything possible to achieve this.”
Was your car affected by the Volkswagen recall? Tell us about your experience in the comments below.
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