VW Headquarters (Photo : Facebook )
Volkswagen's CEO has rejected its European customers' calls that they receive compensation similar to the "Dieselgate" United States settlement the company recently made with American customers. The German automaker agreed to spend $15 billion in damages to diesel car buyers and the US Environmental Protection Agency (EPA) to make them whole. However, VW told a German newspaper that making a similar deal with European customers would be unbefitting and too expensive.
Last week Europe's Industry Commissioner Elzbieta Bienkowska argued it would be unfair if Volkswagen treated European customers differently than ones in the US because of the two legal systems, according to Automotive News. VW CEO Matthias Mueller told the Sunday newspaper Welt am Sonntag that Europe has a different situation.
Mueller said that VW's financial health was strong. However, he also argued that copying the US deal in Europe would create a difficult financial situation for Volkswagen.
US customers will get payments that range from $5,100 to $10,,00 based on their diesel cars' age. VW will modify the autos to meet US federal standards, buy back the vehicles, or end the car leases, according to The Telegraph.
Volkswagen's CEO said that providing high compensation for European customers would cause problems for the company. He reported that last week he had shared his views with Bienkowska.
The German company will spend up to $4.7 billion in the US to reduce air pollution from cars, and invest money to build Earth-friendly "green" cars.
The VW chief executive pointed out that US emissions limits are stricter. He also noted that the buyback program is not required for US customers.
US federal authorities want VW to buy back as many diesel vehicles as possible, so the company must offer special deals to US customers. The situation is different in Europe.
Mueller is the former chief executive of Porsche. He took over VW last September after the EPA discovered that the company had installed on-board software in diesel cars that cheated by reporting lower emissions results for lab tests than road tests.
VW's stock prices dropped over one-third within a few days after the emissions scandal was reported. Its stocks are now trading about one-quarter lower than before the scandal.
Mueller told the German newspaper it will take years for the carmaker to improve its damaged reputation.
Here's a video on VW's US settlement:
