Volkswagen faces fresh emissions legal action from a prime German customer

Automotive - Mohit Shah - Feb 06,2017

Rating -

stars - based on 21 reviews

volkswagen faces fresh emissions legal action from a prime german customer

Volkswagen stuck with a big corporate client in Germany facing a new legal action over the diesel emissions scandal.

Fish distributor Deutsche See is charging Volkswagen AG for misrepresenting a fleet of cars it leased as environmentally friendly, becoming the very first major German client to sue Europe’s biggest automaker over its diesel-test cheating.

Deutsche See leases 500 vehicles from VW. According to a news agency, the firm said it had been unable to reach an out-of-court clearance.

Volkswagen already faces several lawsuits from individual regulators, dealers, owners and states, many of them in the practice of class-action cases fixed in the United States. This is the first case issued by a corporate customer in its domestic market.

"Deutsche See only went into partnership with VW because VW promised the most environmentally friendly, sustainable mobility concept," as per a statement from the company.

According to German tabloid Bild am Sonntag, Deutsche See was suing VW for €11.9-million euros ($16.7-million). However, Deutsche See was not directly reachable to comment on the exact amount.

Volkswagen said on Sunday it hasn’t seen the charge and so could not offer any solid comment on the matter.

Deutsche See confirmed that it had filed the complaint for malicious deception at the Braunschweig regional court located near Volkswagen’s Wolfsburg headquarters. On Sunday, the court was not reachable to confirm it had received the case.

Volkswagen confessed in September 2015 that it had used software to fraud diesel-emissions tests in the United States.

The company is now caught in investigations across the world, and will have to devote a huge amount of money to resolve claims.

The legal action has cost the company over €20billion ($28-billion) so far and also the former chief executive is being inspected by German prosecutors for suspected market manipulation and fraud.