Volkswagen Canada reaches deal to compensate car owners affected by emissions scandal

emission scandal with volkswagen

Affected owners will get between $5,100 and $8,000, depending on make and model of their vehicle

Volkswagen Canada has reached a deal to compensate about 105,000 Canadian vehicle owners affected by a diesel engine emissions scandal that rocked the company.

A deal between the company and drivers who launched a class-action suit has been approved in principle and was expected to be signed Monday in Ontario Superior Court in Toronto. A similar court action was also taking place in Montreal.

If the deal gets approval in Quebec, it will become final on March 31, 2017, after which Canadians will get their settlements.

Under the deal, owners will be able to sell their vehicles back to the company, trade them in for new vehicles or get them repaired. Affected Canadian owners will get between $5,100 and $8,000 in compensation, depending on the make and model of their vehicle.

The total settlement will be worth about $2.1 billion if all drivers claim the amount they are owed, said Harvey T. Strosberg, who is a co-lead counsel for the class-action lawsuit.

“It’s a huge number,” said Strosberg. “No corporation has paid that money in Canadian history. It is a watershed moment.”

The drivers have been waiting since it was learned in 2015 that many VW vehicles were fitted with software to fool emissions tests. Vehicles fitted with the cheat emitted nitrogen oxide at a level many times more than permitted under pollution standards.

The settlement doesn’t include an admission of responsibility from VW Canada.

Ontario Superior Court Judge Edward Belobaba called the deal a “slam dunk” class action.

VW reached a compensation deal with about 475,000 U.S. owners of vehicles with 2.0-litre diesel engines in August.

On Monday, a judge in San Francisco gave attorneys for the U.S. government, VW and car owners until Tuesday to reach a settlement deal covering about 80,000 vehicles equipped with 3.0-litre diesel engines.

Article Source:
CBC News (2016, December 19). Retrieved from http://www.cbc.ca/news/business/volkswagen-emissions-scandal-deal-canada-1.3903045

Leave a Reply

Your email address will not be published. Required fields are marked *