Volkswagen has said that the defeat device or the software allowing its diesel vehicles to evade emission norms does not violate European law.
The German carmaker is aiming to toughen its legal defenses in view of the possible increase in its compensation claims in its home region of Europe.
The European Commission has been increasing the pressure on the carmaker to compensate owners of the car affected with the diesel gate scandal in Europe.
The European region is where the majority of the vehicles have been affected by the scandal and VW has been trying to reduce the impact of the compensation.
After it evaded suggestions that it may have broken the European consumer rules in connection with the scandal, the company says the very technology which led the carmaker to settle $16.5 billion in the U.S is compliant with European laws.
VW said that the software contained in the affected vehicles with a EA-189 engine of which Volkswagen represents no lawful defeat device under the European rules.
VW added that even though it believes that the software complies with European rules, it will continue to follow the order of the German's KBA motor vehicle watchdog and refit the affected cars as a goodwill gesture.
The company also said in a separate statement that it denied the views held by Germany's Federal Environmental Agency and other health lobbies that nitrogen oxides are harmful to human health and the environment.
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