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Volkswagen liable for defeat devices, top EU court rules

Published by Global Banking & Finance Review

Posted on August 1, 2025

2 min read

· Last updated: January 22, 2026

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Volkswagen liable for defeat devices, top EU court rules
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BRUSSELS (Reuters) -The European Court of Justice on Friday ruled that carmakers like Volkswagen remain liable for using unlawful defeat devices, such as temperature-sensitive emissions software, even

EU Court Rules Volkswagen Responsible for Emissions Defeat Devices

Legal Implications of the Ruling

BRUSSELS (Reuters) -The European Court of Justice on Friday ruled that carmakers like Volkswagen remain liable for using unlawful defeat devices, such as temperature-sensitive emissions software, even if the vehicles met EU standards, which doesn't guarantee the technology's legality.

Background of the Case

The case at the European Union's top court arose from two German lawsuits involving Volkswagen diesel vehicles fitted with defeat devices, either during production or through later software updates. The Court said compensation to buyers can be reduced based on vehicle use or capped at 15% of the purchase price, but it must still adequately reflect the damage caused.

Impact on Volkswagen

Volkswagen did not immediately reply to a request for comment. Any additional financial impact from the ruling was not immediately clear.

Understanding Defeat Devices

Defeat devices are tools or software that alter vehicle emissions, triggering legal disputes over whether manufacturers misuse them to conceal true pollution levels. Carmakers have argued these devices only activate at certain temperatures to protect the engine and comply with the law.

Volkswagen was found to have hidden excessive levels of toxic diesel emissions in 2015, a scandal that led to a management rout and thousands of regulatory probes and lawsuits which are taking years to settle.

(Reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan)

Key Takeaways

  • EU court rules Volkswagen liable for defeat devices.
  • Compensation to buyers can be capped at 15% of purchase price.
  • Defeat devices alter vehicle emissions, leading to legal issues.
  • Volkswagen's 2015 scandal involved hidden diesel emissions.
  • Financial impact on Volkswagen remains unclear.

Frequently Asked Questions

What is a defeat device?
A defeat device is a tool or software used in vehicles to alter emissions levels, often to meet regulatory standards while potentially concealing true pollution levels.
What is compensation in legal terms?
Compensation refers to the payment awarded to an individual or entity as a remedy for loss or damage, often determined by the extent of harm caused.
What is compliance in finance?
Compliance in finance refers to adhering to laws, regulations, and guidelines set by governing bodies to ensure ethical and legal standards are maintained.

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