Volkswagen faces new front on emissions legal action

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VW logoImage source, Reuters

Volkswagen faces its first legal action in Germany from a big corporate client over the diesel emissions scandal.

Deutsche See, which leases 500 vehicles from VW, said it had been unable to reach an out-of-court settlement, Reuters news agency reported.

VW is involved in numerous lawsuits from individual owners, regulators, states and dealers, many of them class-action cases in the US.

Deutsche See is one of Germany's major fish and seafood producers.

The business promotes itself as environmentally friendly, and in 2010 won an award for being Germany's "most sustainable company".

"Deutsche See only went into partnership with VW because VW promised the most environmentally friendly, sustainable mobility concept," said a statement from the company.

German media reported that Deutsche See filed its complaint for "malicious deception" at the regional court in Braunschweig, near Volkswagen's Wolfsburg headquarters.

VW on Sunday declined to comment on the reports.

Volkswagen admitted in September 2015 that it had used software to cheat diesel-emissions tests in the US.

The company is now embroiled in investigations across the world, and will have to spend a huge amount of money to settle claims and put the engines right.

The cost of settlements and fines in the US alone are approaching $20bn.