Volkswagen stated it will compensate owners of its heavily polluting diesel automobiles in Germany in a settlement that will cost automaker 830 million euros ($900 million).
In 2015 VW admitted that they were using manipulated engine management software to evade excessive pollution levels in its diesel cars, resulting in series of prosecutions and lawsuits.
The offer comes regardless of a breakdown in talks with German consumer association VZBV, which had been in negotiations with the automaker about reaching a settlement deal .
“The failure of settlement talks with Consumer Association VZBV should not come at the expense of customers,” VW stated, adding that all consumers who had registered for compensation with VZBV would be qualified for the settlement.
VW stated it had refused to reach a settlement with VZBV, blaming the demands for 50 million euros in fees by lawyers representing the consumer organisations.
VZBV stated talks had failed as the automaker had not guaranteed a system of redress which was sufficient for consumers, adding it would keep pressing for a settlement on VZBV terms through German courts.