Volkswagen Australia reaches $140 million diesel lawsuit settlement

Volkswagen Group Australia has taken another step in putting the “dieselgate” scandal in its rear-view mirror by reaching an in-principle settlement with the local class action plaintiffs.

While still to be approved by the federal court of Australia, the agreement could see the circa-100,000 customers with ‘dirty’ EA189 diesel engines receive an average payment of approximately $1400 each.

In total, the payout reaches around $140 million.

“The settlement, on a no-admissions basis, concerns five class-action lawsuits covering all affected vehicles in Australia,” according to a statement from Volkswagen.

The court is expected to confirm the agreement with affected owners next year.

Meanwhile, Volkswagen Group Australia is “close to finalisation and a resolution” with the Australian Competition and Consumer Commission (ACCC) in a civic suit, with details remaining confidential.

Affected VW vehicles include 1.6- and 2.0-litre diesel-powered versions of the Golf (2009-2013)Polo (2009-2015)Jetta (2010-2015)Tiguan (2008-2015), Eos (2008-2014), CC (2008-2015) and Passat (2008-2015) as well as the Amarok and Caddy light-commercial vehicles.

Similarly, the Audi A4A5A6Q3 and Q5, and Skoda OctaviaYeti and Superb, fitted with the same EA189 diesel engine are also caught up in the suit.