German Carmaker Volkswagen Offers Compensation to Customers Affected by Emission Scandal
The recent scandal that racked Europe's leading car maker Volkswagen has revealed a new development from the company's legal stand: a generous compensation for those who were affected. According to The Guardian, it has been four months since the issue on Volkswagen's botched emission tests broke, and the company has not awarded the right to fix the cars.
Recently, Volkswagen's head of claim funds revealed on the German Paper that they are offering compensation to US clients who have been affected by the scandal. The compensation, however, does not state a clear decision on whether affected clients will receive monetary refunds, replacements or car buybacks.
Kenneth Feinberg of Volkswagen also stated that while there was an indicative 60-90 day waiting period for the compensation, the disagreement between the company and the officials doing the investigation makes it impossible to render the action. In his statement, he said, "My hands are tied as long as VW and the authorities have not overcome their differences. It is a purely business transaction, less emotional. I see that from emails I get from vehicle owners who say things like: 'Mr Feinberg, I know I haven't lost a relative, I just want to be treated fairly.' They are all quite reasonable."
Aside from its US issues, the embattled car maker is also facing sanctions in Europe after lawmakers and the European Commission ordered Volkswagen to compensate other owners of Volkwagen's diesel cars, the same as their US clients who will be receiving the said generous compensation.
Volkswagen has suffered a 26 percent decrease on its shares since the scandal broke, and the impact of the company's supposed biggest scandal raised questions about its financial capability. Norway's sovereign fund amounting to $850 billion, however, remains invested on VW, with funds president Yngve Slyngstad saying, "VW is an important company for Germany, Europe and the world. That's why we keep our stake as long as the fund and the company exists."
According to Reuters, Volkswagen recently delayed its 2015 publications and annual shareholders meeting. This was done after the company failed to come to a specific decision on what to do regarding their current emission scandal.
Volkswagen's repair funds of at least 6.7 billion euros are seen to double after the emission scandal that marred the brand's name. Last month, an offer to repair Volkswagen's diesel cars, particularly the 2.0L models, has been rejected by US officials.
Subscribe to Latin Post!
Sign up for our free newsletter for the Latest coverage!
* This is a contributed article and this content does not necessarily represent the views of latinpost.com