EU Court Hits Volkswagen With Software Seen As 'Defeat Device,' Potentially Opens Door To More Consumer Claims

Volkswagen AG VWAGY suffered a setback at the European Union’s top court over its right to deploy IT software technology that protects car components from damage at certain temperatures and altitudes, Bloomberg reported.

In dispute emerging from the aftermath of the diesel scandal, judges at the EU Court of Justice said there was no exemption to EU regulations for the use of software that changes pollutant gas emissions in cars based on the outside temperature.

The ruling opens the door to potential lawsuits for compensation over sales contracts for affected cars.

“Software in diesel vehicles which reduces the effectiveness of the emission control system at normal temperatures during most of the year constitutes a prohibited defeat device,” the EU court said. 

“Since such a vehicle default is not minor, rescission of the sale contract in respect of the vehicle is not, in principle, precluded.”

VW has insisted its use of thermal windows is in line with EU rules, given that its goal is to shield the car’s engine from sudden and unpredictable damages. Despite the ruling, it continues to argue that such software remains legal.

VW argues that the exhaust gas recirculation in its EA189 vehicles is active “most of the year” because it is only switched off if the outside temperature falls below 10 degrees Celsius. 

The court argued that the device at issue in its case switches off the cleaning mechanism at temperatures below 15 degrees Celsius, making it illegal because it doesn’t work “most of the year.”

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