After “Dieselgate”, car manufacturers exposed to new compensation claims

The decision could give ideas. Owners of cars with diesel engines equipped with unauthorized but widespread exhaust gas control software are entitled to conditionally seek compensation from the manufacturer, a German court ruled for the first time on Monday (June 26th). This long-awaited decision concerns the unauthorized software known as the “thermal window”, a separate device from that which caused the worldwide “Dieselgate” scandal.

Monday’s ruling by Germany’s Federal Court of Justice is expected to trigger a wave of compensation claims from automakers. “The vehicle manufacturer must prove that, when issuing the certificate of conformity, it was neither intentional nor the result of negligence that the motor vehicle did not comply with the requirements of Union law [européenne]”said the court.

Between 5 and 15% of the purchase price

German courts have so far refused to compensate consumers, arguing that this was not intentional damage inflicted on car buyers, but at most negligence on the part of manufacturers. Last March, the European Court of Justice (CJEU), however, ruled in favor of motorists, finding that negligence is now sufficient for a claim for damages.

According to the CJEU, it was up to the German courts to calculate the amount of compensation. In its decision on Monday, the Federal Court limited this amount to a range between 5 and 15% of the purchase price of the vehicle. The “thermal windows” device makes it possible to control the purification of exhaust gases from diesel vehicles according to the outside temperature. The nitrogen oxide (NOx) filtration system is reduced or deactivated when temperatures are below 15 degrees and above 33 degrees.

Automakers have always argued that this was a necessity to protect the engine. On the contrary, environmental organizations see this software as a workaround intended to make pollutant emissions appear lower in test conditions than they are in real road traffic.