Volkswagen reaches ‘diesel-gate’ settlement in Canada

TORONTO (ICIS)–German car major Volkswagen Group has agreed to pay up to Canadian dollar (C$) 2.1bn ($1.6bn) to Canadian consumers and a C$15m penalty in a proposed class action settlement, marking one of the largest consumer settlements in Canada’s history, the country’s competition authorities confirmed on Tuesday.

The settlement goes back to the Volkswagen diesel emissions scandal which broke in September 2015 when the company admitted that about 11m of its diesel cars worldwide were equipped with “defeat software”, enabling them to pass emissions tests.

In Canada about 105,000 VW and Audi vehicles were affected. The VW and Audi brands are both owned by Volkswagen Group.

The Canadian settlement, which is still subject to court approval, provides for buybacks and restitution payments to affected drivers.

The settlement is for affected 2.0 litre diesel vehicles. It does not resolve an ongoing inquiry into 3.0 litre diesel vehicles.

The scandal hit sales of the VW brand in Canada this year, which were down 13% year on year for the 11 months through November. However, Audi sales rose 15.1% over the same period.

In October, a court in California approved a $15bn settlement for affected VW and Audi 2.0-litre vehicles in the US.

($1 = C$1.34)

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