Automotive News Canada - May 2017 - v2 - 18

* MAY 2017

VOLKSWAGEN
VINDICATION?
LAWYER: 'Vast majority' of owners
think the settlement is fair
CUSTOMER: Legal system message
to VW is 'not strong enough'
By PERRY LEFKO
TORONTO CORRESPONDENT

AT LEAST ONE DISGRUNTLED
Volkswagen customer thinks the
courts in Canada did not go far enough
in sending a message to the automaker
that cheating won't be tolerated.
"A corporation lied, cheated and
defrauded consumers for profit," said
Charl Roy of Ottawa.
"This was an opportunity for our
[class-action lawsuit] consortium to
send a clear message to big business
that these kinds of situations - cheating or lying for profit - is unacceptable. I really feel our legal system did
not send a clear message," Roy said.
"The penalty is a drop in the bucket
for Volkswagen."
Roy bought a used 2011 Jetta for
$13,000, and based on the valuation of
almost $10,000 plus the "sorry money"
of $5,100, she will receive more than
she paid.
She considers herself lucky.
"I really feel sorry for those who
financed for long terms thinking they
would keep the car forever and now
that may not be possible because of
the uncertainty of having (it fixed) by
2018," she said.
The magnitude of the scandal led to
a Canadian VW TDI Owners Facebook
Group, which has more than 12,000
members. Some are satisfied with
the settlement, but there is also dis-

gruntlement and confusion about the
online process to determine the valuation of their cars.
Most Volkswagen owners caught up
in the scandal, however, think the settlement to be fair and reasonable, said
a lawyer representing the class-action
suit.
"This is by far the largest consumer
settlement that has ever been arrived
at in Canada," said Charles Wright,
a lead lawyer for the plaintiffs. "It's
the biggest and strongest remedy ever
available to vehicle owners following
the allegation or admission that there
was a problem with their vehicles. It is
somewhat unprecedented."
"This was the kind of case where
there were a lot of people who were
upset and hoping somebody would
represent them and bring forward the
case," Wright said.
"The vast majority of people think
(the settlement) is fair."
Buyers who purchased or leased
Volkswagen and Audi 2.0-litre turbocharged diesel cars in Canada between
2009 and 2015 have several options,
including selling the cars back to the
company and receiving financial damages compensation, following a settlement that could cost the Germanybased automaker $2.1 billion.
Volkswagen Group Canada Inc.
announced a settlement on April 21,
following a class-action lawsuit that
began in Ontario on Sept. 18, 2015, and
expanded to include Quebec. The law-

The settlement
is now in effect,
but cashing in
requires more
work than many
diesel owners
would like.

VW BUY-BACKS
COULD BE SOLD AGAIN
* A two-phase emissions modification has been approved for model-year 2015 2.0-litre TDI vehicles,
and Volkswagen Group continues
to work on emissions modifications
for other affected TDI vehicles.
* Vehicles bought back under
the 2.0-litre TDI settlement in
Canada might - if a modification is
approved - be made available for
resale after receiving the modification, or the first phase of the modification in the case of model-year
2015 vehicles.
* Vehicles that cannot be modified
because of their age or condition or
for other reasons will be recycled.

suit originated on the same day the
U.S. Environmental Protection Agency
(EPA) served notice that Volkswagen
used software to circumvent laboratory testing for nitrogen oxide (NOx)
emissions that could emit 10-40 times
the allowable limit in normal driving
situations.

CUSTOMER OPTIONS
The Canadian settlement covers
105,000 vehicles, of which 7,000 were
under lease from Volkswagen Credit
Canada as of Sept. 18. The remaining
98,000 are owned, but some were sold
after Sept. 18. Anyone who purchased
a car on or before Sept. 18 is eligible
to sell the vehicle back to Volkswagen
based on a wholesale value determined by Canadian Black Book. The
car can also be used as a trade-in for a
new or used car based on fair market
value at the time of trade-in.
The agreement for the VW cars
provides $5,100-$7,000 in damage pay-

ments for current owners and $2,550$3,550 for anyone who sold their cars
after Sept. 18. The agreement for Audi
cars provides $5,200-$8,000 for current
owners and $2,600-$4,000 for the previous owners.
There is also an option that allows
owners who bought their vehicles on
or before Sept. 18 to keep them and
receive an extended emission warranty and a cash payment, provided a
modification is approved by regulators
by June 15, 2018. That option is also
available to anyone who bought the
vehicles after the Sept. 18 deadline. If
modifications haven't been approved
by the deadline, a second opt-out period will be available for anyone who
has not received benefits under the
settlement. At that point, they can
decide to use the buyback option or
opt out and launch a lawsuit against
VW for claims.

LEASED VEHICLES, DIFFERENT OUTCOME
For anyone who had leased their
vehicle from Volkswagen Credit
Canada on Sept. 18 and still remains
in the lease, there is an option that
allows for an early lease termination
and a cash payment. There is also an
option to keep the vehicle and receive
an extended emissions warranty and
cash payment, but only if the modification is approved.
Anyone who leased the vehicle
from Volkswagen Credit Canada on
Sept. 18 and the lease has since ended
might be eligible for a cash payment.
Anyone who buys out their leased
vehicle at lease-end could be eligible to keep the vehicle and receive an
extended emissions warranty and a
cash payment provided the option is
approved.
The claim process began April 28.
Thomas Tetzlaff, manager of media
relations for Volkswagen Canada, said
the approval of the settlement is "an
important milestone" in the corporation's journey to "making things right
for Canadian consumers."
- ANC

Table of Contents for the Digital Edition of Automotive News Canada - May 2017 - v2