VW Dodges Cheating Fines in Germany as Customers Demand Payouts

  • Government writing ‘blank check’ for cheating, Krischer says
  • Bild takes VW to task for lack of compensation in Germany

A new Volkswagen Passat automobile, manufactured by Volkswagen AG, sits on railway transporters in Munich, Germany, on Wednesday, March 17, 2016. Volkswagen is in talks with U.S. authorities to establish a national remediation fund and a separate one for California as punishment for pollution from its cars after the automaker cheated on diesel-emissions tests, said people familiar with the matter.

Photographer: Krisztian Bocsi/Bloomberg
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Volkswagen AG is set to escape fines from the German government even after cheating on emissions tests for years, reflecting a softer political stance that’s increasingly drawing ire following a generous deal for U.S. drivers.

Germany’s influential Bild newspaper took Volkswagen to task for failing to compensate more than 2 million affected owners after Chief Executive Officer Matthias Mueller rejectedBloomberg Terminal compensation in Europe as an excessive burden. Little support is likely from the German government, with the Transport Ministry not planning to seek fines. The regulator is instead relying on a recall to resolve customer complaints and an ongoing criminal investigation to determine whether any further measures are warranted.