Volkswagen is set to pay €23 million to car owners in Austria over the installation of emissions-cheating devices in its vehicles, following an out-of-court settlement, the Austrian Consumer Protection Association (VKI) has announced.
The lawsuits, which began in 2018, stem from allegations dating back to 2015 that Volkswagen installed manipulated engine software in diesel vehicles. Volkswagen has welcomed the settlement.
An ORF report suggested that around 10,000 people in Austria were affected, with an average payout of €2,300 per person. However, the actual compensation will depend on the purchase price of each vehicle. The VKI will oversee the process and inform claimants individually of their outcomes.
In some individual cases, far larger sums have been awarded. In March 2024, Austria’s Supreme Court granted €13,200 to the owner of a VW Tiguan. In Germany, a 2020 class action by the Federation of German Consumer Organisations saw compensation of between €1,350 and €6,257 per vehicle.
Volkswagen expressed satisfaction with the legal resolution: “Volkswagen welcomes the settlement reached with the VKI.” The Ministry of Social Affairs also issued positive remarks. “Once again, we have succeeded in protecting consumers’ rights against a powerful corporation,” said Social Affairs Minister Johannes Rauch.
However, for many victims, the matter is not yet fully resolved. The Austrian Automobile, Motorcycle and Touring Club ÖAMTC estimates that 363,400 vehicles in Austria were affected, including 180,500 Volkswagen passenger cars, 24,400 Volkswagen commercial vehicles, 72,500 Audis, 31,700 Seats, and 54,300 Skodas.
The future remains uncertain for a further 18,000 individuals who initially joined the criminal case against VW through the VKI but did not take part in the subsequent class action. The Consumer Protection Association (VSV) has offered to assist, stating that these claims could still be pursued in the Brunswick Regional Court in Germany, with the help of German lawyer Tittel and a litigation financier. The VKI will need to inform affected individuals and refer interested claimants to the VSV. Additionally, those interested can still join the VSV’s class action.
Cobin Claims has also reported progress in its proceedings against Volkswagen. Recently, the Regional Court Steyr awarded victims “10% in damages plus interest since 2018,” according to the class action platform. However, this ruling is not yet legally binding.
Compensation in other countries has been significantly higher. A 2020 report by the US Federal Trade Commission revealed that Volkswagen has paid $9.5 billion in damages in the US since 2016. In Italy, 60,000 affected individuals received only up to €1,100 each. In Switzerland, many claimants received nothing after a class action involving about 2,000 people was dropped last year.
Globally, Volkswagen has admitted that 11 million vehicles were affected by the emissions scandal. In September 2015, the automaker confessed to using software that ensured emissions standards were met only during testing, while real-world nitrogen oxide emissions were significantly higher.
