Volkswagen rejects cash offer for European customers

Volkswagen has rejected the cash offer for its European customers who were effected by the emission scandal.

Matthias Muller, Volkswagen Chief has ruled out that the company will make damage payments to European customers that were effected by the emissions-cheating scandal, similar to the payments Volkswagen is forced to make in the US market.

Recently, Volkswagen was ordered by the US Justice department to make a compensation worth $14.7 billion, while offering $5,100-10,000 to each customer in America in damages. The European Union had also made similar demands, but Muller refused to make a similar deal. As Emission regulations in the America are stricter than EU standards, Muller reportedly claimed that a damages scheme in Europe would need to follow a different approach, and it would be too expensive for the company.

Volkswagen was found guilty of fitting a defeat device in their diesel powered cars they had sold to customers in the US market. The system could detect steering and pedal movements to understand that it is being tested under standard conditions. When the software would detected the situation, it would make the vehicle emit 35 times less NOx emissions.

Volkswagen has reportedly set aside $18 billion to handle the fallout from the Diesel Gate scandal, but is currently assessing if the amount is adequate.

Also Read: Volkswagen to shell out $14.7 billion in USA over diesel scam

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