Volkswagen's Marine Unit Sued To Pay USD 50 Million In Compensation

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The marine unit of Volkswagen has been sued by I.M. Skaugen, a shipping company, seeking USD 50 million in compensation for rigging the tests in ship engines too! These engines have been made more than 10 years ago.

Skaugen claims that six engines that were bought from MAN, which VW owns 75 percent of, is using more fuel than what the company has claimed.

In 2011, MAN had admitted that some tests that were done in the factory with its four-stroke marine engines may have been rigged to show artificial fuel consumption. A spokesperson for MAN said that the company worked to compensate clients, but has not been able to settle with I.M. Skaugen.

In July 2015, I.M. Skaugen filed a case with a Singapore court for USD 20 million, claiming six engines were under performing. The company has revised the amount to USD 50 million, to reflect new estimates for fuel and other costs.

Morits Skaugen, the CEO of I.M. Skaugen told Reuters:

"We have tried to engage MAN for quite some time to sort out these problems. In 2012 we were promised transparency and we were promised that they would do whatever they could to settle the issues."

"My goal here is to highlight that the method being applied, the software, is the same. The purpose seemed to be the same, to conceal the fact that these engines do not meet the promised standards, whether it is fuel consumption or emissions."

MAN was fined 8.2 million euros back in 2013 for misleading customers and violating laws with the rigged marine engines. The software in the company allowed the engines to show lower fuel consumption than reality.

MAN had also tried to negotiate with the shipping company to settle these issues out of court, but that has collapsed a long time ago.

Read more on: #volkswagen
Story first published: Wednesday, October 21, 2015, 18:24 [IST]
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