Carmakers must pay compensation for diesel vehicles fitted with illegal emissions controlling devices, Germany's highest federal court ruled on Monday, in a case that could potentially cost Volkswagen, Mercedes-Benz and others millions of euros.
The judge overturned previous dismissals by courts of such claims and referred them back to courts of appeal. It was up to carmakers to prove that their so-called defeat devices were functional and not illegal, she said.
Carmakers argue the devices, which are only switched on at certain temperatures, are needed to protect the motor and are in line with the law.calling for recalls and compensation on vehicles with such devices, a high-cost hangover from the industry's 2015 diesel scandal - which centred on Volkswagen - at a time when it is under pressure to focus on the transition to electric vehicles.
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