VW faces mass lawsuit

VW is now facing a mass lawsuit in Germany, the first of its kind, as the emissions scandal still casts a shadow over the company despite is recent conversion to electric vehicles.

The company has already had to contend with class action claims in both the US and Australia, and a recent change in Germany means that class actions can now be presented in the company’s home jurisdiction. In this lawsuit, as many as 450,000 claimants could be involved.

Recently chief executive Herbert Diess, chairman Hans Dieter Pötsch and ex-CEO Martin Winterkorn, were charged with withholding information from investors.

For VW this period is turbulent – it faces lawsuits and claims for compensation, criminal charges, and loss of reputation all at a time when all manufacturers are moving to electric and hydrogen vehicles. However, the brand has continued to sell well and maintain market share.

None-the-less, the entire episode has already cost the carmaker €30bn, and the direct and indirect costs are likely to be significantly higher as the lawsuits multiply.

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