Anyone who owns a diesel-powered, four-cylinder Volkswagen may be contemplating legal action against the carmaker after revelations that the company cheated emissions testing. This has left car buyers stuck with a car they apparently enjoyed driving enough to purchase, but that probably has rapidly declining resale values and is doing much more damage to the environment than they originally believed.
This has left a number of car owners debating whether they should try to sue Volkswagen, sell their cars, or hold onto them and see how things go. The disclosure that Volkswagen developed software for its 2-liter diesel engines (found in vehicles including Jettas, Golfs, Passats, Beetles, and the Audi A3) that could defeat pollution testing has already had a direct impact on the value of these vehicles. Until the company discovers a way to fix the illegitimate emissions problem, there is little buyers can do about their vehicle’s pollution control. That makes resale buyers unlikely to pay much for these vehicles, since they all have a well-publicized defect.
The Problem
VW’s software defeated pollution controls by turning on while the vehicle was hooked up to the testing equipment while in a testing facility, then turning back off when the vehicles took to the street. This allowed for better performance on the road tests (such as mileage ratings), while allowing the vehicles to spew much higher amounts of pollution into the atmosphere. This intentional defect affects about 500,000 of the cars Volkswagen sold in the U.S.
Unfortunately, although VW has acknowledged the deceit, the automaker does not yet have a way to fix the problem. Owners understandably fear that the repair will cut fuel economy and performance, which is why the company defeated the test in the first place. Of course, car buyers bought these vehicles, in large part, based on the mileage, performance, and emissions performance.
The EPA has given Volkswagen a year to fix the cars. The problem affects cars dating all the way back to 2009. For its part, the automaker claims a software change will bring the 2015 and 2016 models into compliance, and none of these vehicles can be sold by dealers until the repair has been effected. However, there is no answer as to how VW plans to fix 2009-2014 models, and it appears possible that the problem could require both a hardware and software change.
Car Values
Concerned about declining car values, many owners rushed to sell their vehicles. This has led to a “fire sale” on used Volkswagen vehicles that could steeply depress prices. The full impact will not be known for a few weeks, but many analysts believe the prices will sharply decline for these vehicles that have traditionally had higher resale values than their gasoline powered counterparts. The problem could be exacerbated if the fix proves to reduce mileage and performance.
If VW makes the repairs, the impact on car values may be brief, especially if mileage and performance are not adversely affected (or only minimally so). Of course, it is far more likely that the repair will have an impact, and that could create a much longer lasting impact on values.
As a result, some owners are hoping VW will provide a rebate or a buy-back program. Others are content to wait and see whether vehicle prices will continue to decline, and if so, how significantly. Of course, a third camp has decided it cannot allow such deceit to go unpunished and a number of private and class action lawsuits have erupted across the nation.
Should You Take Legal Action?
There are two ways to pursue Volkswagen in court: either individually or through a class action. For most buyers, a class action is going to be the better option, given the greater resources and lower costs involved with these types of cases. Of course, the individual also has less control over the course of the litigation or the relief which he or she is willing to accept in settlement.
At least 34 class action lawsuits have been filed to date, and more are likely to follow. Unlike many class action lawsuits, however, this case has drawn intense public scrutiny and even calls from political leaders to crack down on the automaker. Several government agencies, including the Federal Trade Commission (FTC) have undertaken investigations of VW’s false and deceptive advertising and intentional misrepresentations to both the EPA and consumers. Some of these agencies may be able to seek remedies on behalf of all car owners adversely affected by Volkswagen’s actions.
If you want to fully investigate your options, you should speak with an attorney. You can find a lawyer in your area by using the attorney search function at HG.org.
