(Alliance News) - Volkswagen AG has suffered another defeat in its defence against damage claims from owners of diesel cars fitted with a defeat device, after the European Court of Justice, ECJ, sided with two plaintiffs.

The two car owners are demanding compensation after their diesel vehicles were equipped with defeat devices, which play an important role in the Volkswagen emissions scandal that has kept courts busy for years and already cost the Wolfsburg, Germany-based carmaker billions in compensation.

The devices ensured that exhaust gas recirculation was reduced at an outside temperature of 10 degrees Celsius, resulting in an increase in nitrogen oxide emissions and at times in a breach of environmental standards.

Volkswagen argued in the proceedings that it had assumed the defeat device was permissible and that it would have been approved by national authorities if they had been asked for approval.

The EU's top court ruled however that a car manufacturer cannot be released from liability for an unlawful defeat device simply because the competent national authority has granted approval for the vehicle type or the device itself.

In addition, the court clarified that the manufacturer's liability applies both if the illegal defeat device was installed during the vehicle's manufacture and if it was installed at a later date.

The ECJ also stressed that it must be ensured that financial compensation represents appropriate reparation for the damage suffered.

In light of the many customers affected, Germany's Federal Court of Justice had previously issued guidance for lower courts to order a baseline compensation rate of between 5 and 15% of the purchase price, to prevent them from having to go into further detail in every case heard and having to involve an expert.

Volkswagen shares fell 2.3% to EUR89.98 each on Friday afternoon in Frankfurt.

source: dpa

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