Volkswagen faces Germany's biggest ever lawsuit over "dieselgate"

Four years after the auto manufacturer's largest post-war scandal broke, a court case opened which set hundreds of thousands of manipulated diesel car owners, all demanding compensation, against the German car giant Volkswagen.

Around 450,000 people have joined up to the a first-of-its-kind proceeding, introduced by lawmakers in the wake of the 2015 "dieselgate" emissions scandal. 

The first hearing in what is almost certain to be a years-long, grinding trial, began yesterday morning, not far from the VW head office in Wolfsburg. The next is planned for November 18.

Representing the plaintiffs, consumers rights group VZBV says that VW caused deliberate harm to buyers by installing motor control software allowing vehicles to pollute far more on the road than in lab conditions.

This is Germany's largest trial to date in the scandal which last week saw Volkswagen's chief executive Herbert Diess charged with market manipulation over his role.

"Several regional tribunals have already found against Volkswagen" and granted plaintiffs compensation, judge Michael Neef noted as the proceedings opened.

Of the around 50 questions about the case, judges must decide on, whether Volkswagen "caused harm" by acting "dishonestly" will be "one of the central, difficult questions," Neef added.

"We're confident of our chances since Volkswagen committed fraud," VZBV lawyer Ralph Sauer told AFP ahead of the hearing.

Volkswagen's lawyer Martine de Lind van Wijngaarden argued that there was "no harm and no basis to this claim" because "hundreds of thousands of cars are used" on the roads without any problems.

Judges said that even if they find there was harm, the amount diesel owners receive in compensation would be based on the present-day market value -- not the original purchase price.

Every owner registered in the trial will have to claim individually, even if the plaintiffs were to win the case.

VW has said it believes there could be a final judgement in 2023 at the earliest, if the case is appealed and taken all the way to the Federal Court of Justice.

By that time, the cars' value will have further deteriorated, making buyback far cheaper for the firm.

The judges mentioned the possibility of a settlement while allowing that such talks "would not be easy" given duplicates and foreign residents on the list of plaintiffs.

The VZBV says it is "open" to an out-of-court settlement but "in that case, VW would have to pay a significant sum after all," Mueller told AFP.

VW has said it finds a mass settlement "hard to imagine".

The scandal has cost VW over €30-billion in fines, compensation and legal costs since 2015 when the Dieselgate scandal broke and the company admitted to manipulating 11 million vehicles worldwide to fool emissions tests. 

Around two-thirds of that money has gone to the US. Back in Germany, VW has so far paid three fines - a combined total of €2.3-billion.

As well as car owners, Investors are claiming damages for losses they suffered when the group's share price plummeted following its admission.

And earlier this week, chief executive Herbert Diess and supervisory board chief Hans Dieter Poetsch were charged with market manipulation.

Former chief executive Martin Winterkorn, who stepped down over the scandal, has been also charged with fraud.

Brand chief Ralf Brandstaettter has said that the diesel emissions scandal is now "part of the group's history".

"The diesel crisis was a catalyst for our transformation," Brandstaetter said in a recent interview with AFP, highlighting Volkswagen's €30-billion investment in a new range of electric cars to "regain society's respect".

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