German carmaker, Volkswagen has agreed to pay USD 87.3 million per car to settle numerous lawsuits that were framed against them by people who owned vehicles manufactured by their company. This is in relation to a scandal that had devices fitted in cars cheating the emissions test.

A device to cheat emission tests

According to the lawsuits, the vehicles in question were fitted with devices that were made in a way to deceive the emission tests and look towards recompensing money from the people who were affected. 

The German group which owns Audi and Skoda stated that 11 million cars that run on diesel were affected all over the world and in 2015 it came to light that more than 90,000 cars made by Volkswagen were affected as they were fitted with devices designed to cheat the emission tests. 

Read: Emission Fiasco: NGT Slaps Rs 500 Crore Fine On Volkswagen

The case against the carmaker was brought on by Bannister Law and Maurice Blackburn in the month of November in 2015 and with this case that has already made its way to the court, owners of approximately 100,000 cars in Australia will be able to claim a compensation from Volkwagen under what is being called the in-principal agreement that still needs a nod from the federal court. 

According to Julian Schimmel, a lawyer in one of the firms behind the class actions said that it is a significant step forward in providing justice to all those who said that they were financially troubled by the problem at hand. Volkswagen said that the settlement is a piece added to overcome the diesel issue.

Read: Rival Tribute: BMW Pays Mercedes-Benz's Outgoing-CEO A Clever Video Tribute Saying 'Retirement Is About Exploring Options', Here's How Netizens Are Reacting

Environment-friendly cars?

In the lawsuit, the companies were accused of deceiving their customers by selling them the affected cars under the pretext of environment-friendly cars. Also, the cars were run on 2.0-liter diesel engines and would have never been granted permission if the true extent of the emissions were known. 

The German automaker is also being sued by the Australian Competition and Consumer Commission on the basis of not honoring the conditions of the complaints against them that may lead to hefty fines being levied against them. Volkswagen was previously involved in a multibillion-dollar settlement that aimed at compensating motorists in America and Canada. 

Read: Giant Carmaker Volkswagen Says Its Next Generation Of Combustion Engine Cars Will Be The Last

Read: Volkswagen Adds 1.6-litre Diesel Engine To The T-Roc. Will Be Placed Below The 2.0-litre Diesel Engine

(With inputs from PTI)