Volkswagen’s institutional investors have filed a multi-billion dollar suit against the automaker. The lawsuit claims that there were breaches of its stock market duty concerning the dieselgate scandal, Reuters reports.
Claimed damages amounting to USD$3.6 billion (RM14.9 billion) was filed at a regional court in Lower Saxony, Germany and is being brought upon by some 278 investors worldwide. Some of these institutions include German insurers and US pension fund Calpers.
In the lawsuit, law firm TISAB highlighted that Volkswagen had failed to keep markets properly informed between June 2008 and September 18, 2015. Meanwhile, a motion for a “model claims” – a German legal procedure – has also been tabled.
An account of events leading to the violation of US emissions law that was publicly announced by the US Environmental Protection Agency (EPA) was published earlier this month by Volkswagen. In it, it appeared that the company was aware of the issue well ahead of the EPA announcement.
“Due to the fact that – according to our information and experience – Volkswagen AG persistently denies any settlement negotiations and also refuses to waive the statute of limitation defence until now, it was necessary to file this first multi-billion euro lawsuit,” said Andreas Tilp, a lead lawyer from TISAB.
This is not the first lawsuit that the embattled automaker has been slapped with. Earlier this year, the Department of Justice filed a court action against the company. The lawsuit amounting to USD$90 billion (RM343 billion) was filed on grounds that the carmaker attempted to cheat its way past the nation’s Clean Air Act with emissions-manipulating devices.
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If I may add, VW Malaysia’s WE CARE campaign is all but a hogwash. Besides, I have yet to witness We Care campaign being held outside the Federal Territory.
Japanese accepts their mistakes.
German denies all their mistakes.
Learned DSG and diesel-gate fallout.
If they really care. No need to wait until today lo. Right?
Das Auto!
Has the DSG issues resolved ? I hear that all DSG issues are resolved since 2014.
Is this true ? there is some good offers from VW on Jetta and Pasat.
Any advise / comments is greatly appreciated ?
My advice, stay away from the brand. I own a end 2014 Jetta. Foremost, value plunged rendering it worthless following VW’s latest sale campaign. I approached my sales rep to trade in for a Golf two days ago and till today I got no response from him. Notwithstanding, handling and ride is good. Consumption is on the high side for town use but good for highways. Lately, I get a whirring and metal rattling sounds from the undercarriage when driven at at moderate speed of 65kph. Besides, stepping on the accelerator caused a clanking sound that I perceived is coming from the engine compartment. Sending in for check Friday
Thanks Ongtk for your thoughts. Appreciate much. Hopefully you don’t have a serious issue with your car! All the best…
I own a CBU 2013 Jetta. Done 30K never had breakdown but still tonnes of headache. Clutch pack replaced but still defective. Lots of minor minor issues make me always. Their procedure took few rounds of SC visits before can solve one problem. I’m giving up. One time purchase. That’s it!
Second this comment to stay away from VW.
I am driving a 2010 Touareg and recently there’s some computer problem causing me to lose the function of ABS, Parking Brake, DSC (Traction Control), Cruse Control and a few other stuff.
I sent it in to VW to repair in early March. Their comment was that if it’s a safety concern, they will look at it immediately, if not, I will be booked in at a later date.
They got back to me stating it was NOT a safety concern and booked for late April.
I can tell you that I am NOT happy. The lack of ABS and DSC on a 2.5 tonne vehicle is not a safety concern?
So yes, please stay away from VW.
Thanks for the advice Mr. Ong. Since Jetta (mfg year 2014) promo only rm88,888 make me so excited to own the car. The price now same with B segmen car. Maybe i have to wait 2018 to buy 2016 jetta.
Hi Ongtk, what causes ur car undercarriage sound? Did Sa told u that
Car manufacturers worldwide are moving away from dry clutch, shows how you really can’t ‘fix’ this
With the lawsuits and fines that VW may be subjected to, they’d have to at least revert to a conventional torque converter for the base 1.2 and 1.4 models unless they are willing to push further development of the dry DSG.
Malaysian Vw owners also should sue. Basically for 2 reasons.
1) Been suffering with non stop breakdowns even until 2016 and VGM has lied for 8 years denying about the DSG scandal. When they did acknowledge there was an inherent fault in the DSG, they quickly said mineral oil will solve it. Until now, even with using mineral oil, people with DSG face breakdowns
2) RV for all VW cars has dropped. Even used car dealers don’t want to touch VW cars knowing about the DSG problems. To make matters worse, VGM recently had fire sale. RV drop even further. But everyone is asking one big question, how come in 2016, VGM still got 2014 stock cars? Most owners cannot even sell their cars now, whatmore low RV value. People with 2014 Passat also being offered RM70k when they bought for RM180k.
Malaysians should sue like how the Mat Salleh is suing. Sue for compensation, sue for the non stop waiting for tow trucks
I did remember, some Malaysian really made loud noises when Proton ended their talk with VW. No possible collaboration….so peeps…make some noise y’all!
Its odd that investors are suing their own investments. Wouldn’t that have a negative effect on their stock prices, and lower profits/dividends?
With thing happen all around vw this day, their share already render worthless. Its time to cash out before its to late.
Kalau perbicaraan betul-betul adil, investor akan kalah.
Provided that VW gets good lawyer.
Big sale coming up and i don’t mean volkswagen golfs, i mean rolls royce, lambo, audi, all the makes that VAG owns
Rolls Royce is not under VAG.
But in addition to your list, Bentley, Bugatti, Porsche, SEAT, and Škoda are under them.
Ducati also
Why no sale on the Beatle?
Because that’s a band. Not a car.
Beetle