By Park Jin-hai
As complaints about the emissions scandal surrounding Volkswagen cars continues to grow, with customers seeking class action lawsuits here and in the United States, Volkswagen Korea has stopped selling the affected models here.
It has been taking back Euro 5 emission standard models, including the Passat 2.0 TDI, Tiguan and Beetle, from its dealers since last week.
VW made the decision on its own, not directed from headquarters in Germany, in order to ease the sales burden of its dealers for the troubled models.
With the measure, the company estimates that it is hoarding 300 to 400 vehicles in stock, worth 12 to 16 billion won, according to the company.
“We have been taking back those cars from dealers with no strings attached. We think almost all cars suspected will be returned to us,” said a company spokesman.
The returned cars will be either returned to Germany or be used for internal use, said the company.
Although those cars have been under a government probe here, their sales are banned in countries like the United States and Switzerland.
The company has been under attack, because it has remained tightlipped on recalls, while taking back the cars for the benefit of its dealers.
Customers are now seeking a two-track legal action here and in the United States through Barun Law, a law firm representing Volkswagen customers.
Filing the third round of civil suits with the Seoul District Court on behalf of 226 owners, Barun said it aims to file class action law suits in the U.S. as well.
“The Passat models were manufactured in Volkswagen’s Tennessee plant and imported. With that in mind, we plan to seek legal action there too,” said Ha Jong-sung, an Attorney at Barun, during a press briefing at its office in Seoul, Tuesday.
So far a total of 266 plaintiffs have initiated legal action here.
Apart from the cancellation and full refund of the purchase contract here and in the U.S., Barun will also file for punitive damages with the California federal district court.
Punitive damages are awarded where compensatory damages are deemed inadequate in the U.S. The court imposes them to prevent the under-compensation of plaintiffs, where the damages are often much larger than the actual profits the company may gain from the tort claims.
“When punitive damages are accepted, the plaintiff might receive damages that are three to ten times greater than the actual damages. To maximize customer compensation, we need to seek punitive damages that don’t exist under the local legal system,” added Ha.
Among the 266 plaintiffs, 51 own the Passat model. After the law firm receives consent from the Passat owners, it plans to proceed with a class action suit in U.S.