VW 'commits' to EU-wide dieselgate fix by autumn 2017

The European Commission says Volkswagen (Xetra: 766400 - news) (VW) has given a commitment to have all cars affected by the dieselgate scandal in the EU repaired by autumn 2017.

The announcement was made in Brussels following a meeting between the Consumer Commissioner Vera Jourová and a member of the firm's management board amid frustration over fixes and clamours for compensation.

She (Munich: SOQ.MU - news) said: "VW committed to an EU-wide action plan today, which is an important step towards a fair treatment of consumers in the EU.

"I will closely monitor this commitment and continue to work with consumer organisations, authorities and VW."

She is being urged by consumer groups to ensure EU drivers, including 1.2 million in the UK, are compensated in a similar fashion to the owners of vehicles affected by the cheating in the US.

Motorists there are in line for payments of more than $10,000 ($7,600) each.

The cost to the group of its US settlement alone has topped £12bn. Some analysts estimate the total bill for the scandal as a whole will surpass £30bn.

Campaigners for compensation argue drivers deserve cash to reflect loss of resale value and the fact consumers were buying vehicles with far higher emissions than advertised.

The company is facing inquiries by a number of regulators within the EU. A string of lawsuits has also been filed.

Earlier this month a VW engineer pleaded guilty in the US to conspiring to commit fraud in connection with the so-called 'defeat device' software - fitted to vehicles to mask true emissions during testing.

James Liang, who had worked for VW for 33 years, was told he faced up to five years in jail ahead of sentencing next year.