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Volkswagen liable for defeat devices, top EU court rules

The European Court of Justice on Friday ruled that carmakers like Volkswagen remain liable for using unlawful defeat devices, such as temperature-sensitive emissions software, even if the vehicles met EU standards, which doesn't guarantee the technology's legality.

The two German suits involving Volkswagen diesel cars fitted with defeat devices - either during production or later software updates - led to the case before the top court of the European Union. The Court stated that compensation for buyers could be reduced by vehicle usage or limited to 15% of the original purchase price. However, it should still reflect the damages caused.

Volkswagen did not respond immediately to a comment request. It was not immediately apparent if the ruling would have any additional financial implications.

The term defeat devices refers to tools or software which alter emissions from vehicles. This has led to legal disputes about whether manufacturers are misusing them in order conceal the true levels of pollution. These devices are only active at certain temperatures, according to carmakers. They claim this is done in order to protect engines and comply with law.

Volkswagen has been found to have concealed excessive levels of toxic emissions from diesel in 2015. This scandal led to a management meltdown and thousands of regulatory investigations and lawsuits that are taking many years to resolve. (Reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan)

(source: Reuters)