Volkswagen will not duplicate a U.S. compensation programme for European drivers. Hayley Platt reports on the latest twist in the VW emissions scandal.
It's not the news Volkswagen's European customers will want to hear. The German automaker says there are no grounds to offer European customers the same compensation that U.S. customers have been promised. Elzbieta Bienkowska, the European commissioner is demanding action from VW. She wants compensation for the the drivers of the 8.5 million vehicles thought to be affected by the emissions scandal in Europe. VW has instead promised to remove the illegal devices. Panmure Gordon's Simon French. (SOUNDBITE) (English) PANMURE GORDON, CHIEF ECONOMIST, SIMON FRENCH, SAYING: "I think Volkswagen are probably being quite smart to be segmenting this up rather than having a universal approach. It's important if you're operating in different legal jurisdictions to have a reaction that is proportionate and appropriate to that one rather than a one size fits all model, so I think it's the right approach." It's been nearly four months since VW admitted it cheated U.S. environmental tests. The company is facing fines of up to $46 billion for allegedly violating environmental laws. Those affected in the U.S. have been promised a goodwill package worth around $1,000. (SOUNDBITE) (English) PANMURE GORDON, CHIEF ECONOMIST, SIMON FRENCH, SAYING: "Public perception is key and clearly if treating U.S. customers differently to their European customers is wrapped up in a narrative of "well we're getting a rum deal here," it can be a real problem. So I think there is a balancing act." The European Commission says EU consumers should be treated the same way as U.S. customers. VW has agreed to take another look at the issue.