VW class action gathers momentum in Australia, with a personal injury law firm lodging first round documents in the Federal Court; which could result in refunds up to $5 billion dollars if successful. Ninety one thousand Australian owners of Volkswagen diesel cars have vehicles fitted with the pollution test cheating devices. The huge German motor car company is facing massive financial reprisals internationally, in both class actions. and loss of sales due to consumer backlashes.

Bannister Law filed two class actions: one against Volkswagen Australia and another against Audi Australia, as they are separate legal entities. The basis of the class actions is that both VW and Audi guaranteed, under consumer laws, that the automobiles were fit for their purpose and defect free. Another very large Australian legal firm based in Melbourne later announced that seven thousand consumers had registered for its class action to be filed shortly. Nearly, fifty legal firms, globally, have filed class actions against Volkswagen.

VW Australia. assures its customers that the cars are technically safe to drive; but lawyers stress the point is that these vehicles are emitting far in excess of the permitted nitrogen oxide emissions in this country, and that they would not have passed the Australian design standards. Basically, they would not have been allowed to be sold in this country if they were not fitted with the pollution cheating devices. This occurrence has been blamed on a single automotive engineer who worked for Volkswagen, but many industry watchers have scoffed at this as an unrealistic lame excuse. The question being asked is, how could this affect so many vehicles worldwide without VW management’s knowledge?

This has truly had compensation lawyers in Australia as well as around the world licking their lips in excitement as it not just offers them a massive payday as massive publicity for their legal firms. Ambitious compensation lawyers are seeing this as their ticket to fame and glory, it might also be said that the lawyers pushing this the hardest are probably the lawyers with the greatest self-interest in mind.

The German car company has registered its first loss, during a financial quarter, for the last fifteen years. VW has put aside $6.7 billion Euros in preparation for the cost of recalling and repairing some nine million vehicles globally. The embarrassment at being caught out in this anti-environmental practice is only the first stage of what could be a business threatening blunder. Legal action costs will mount and go on for many years, and the loss of consumer confidence in the brands could damage profits at the same time.

VW class action in Australia, as well as Audi legal action, will put the car manufacturer under economic stress in this country – especially for future sales. The global blunder could see the car company go down under the weight of class actions and consumer backlashes.