Case C- 666 /23, Volkswagen (Right to Adequate Compensation): Judgment of the Court (Fifth Chamber) of 1 August 2025 (request for a preliminary ruling from the Landgericht Ravensburg – Germany) – CM, DS v Volkswagen AG (Reference for a preliminary ruling – Approximation of laws – Approval of motor vehicles – Directive 2007/46/EC – Article 18(1) – Article 26(1) – Article 46 – Regulation (EC) No 715/2007 – Article 5(2) – Motor vehicles – Diesel engine – Pollutant emissions – Reduction in nitrogen oxide (NOx) emissions limited by a temperature window – Defeat device – Protection of the interests of an individual purchaser of a vehicle equipped with an unlawful defeat device – Installation of that device after the vehicle’s entry into service – Right to compensation from the vehicle manufacturer on the basis of tortious liability – Ground for exemption – Unavoidable error on the part of the manufacturer as regards the unlawfulness of the defeat device – Principle of effectiveness – Adequate compensation for the loss or damage – Method of calculating compensation – Compensation bracket)
Date: 2025-08-01
Institutions: Court of Justice
Subjects: Community certification, damages, indemnification, legality, market approval, producer's liability, purchase price, software, vehicle parts








C_202505067EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2025/5067


29.9.2025






Judgment of the Court (Fifth Chamber) of 1 August 2025 (request for a preliminary ruling from the Landgericht Ravensburg – Germany) – CM, DS v Volkswagen AG


(Case C- 666 /23,
                (1)
Volkswagen (Right to Adequate Compensation))

(Reference for a preliminary ruling - Approximation of laws - Approval of motor vehicles - Directive 2007/46/EC - Article 18(1) - Article 26(1) - Article 46 - Regulation (EC) No 715/2007 - Article 5(2) - Motor vehicles - Diesel engine - Pollutant emissions - Reduction in nitrogen oxide (NOx) emissions limited by a ‘temperature window’ - Defeat device - Protection of the interests of an individual purchaser of a vehicle equipped with an unlawful defeat device - Installation of that device after the vehicle’s entry into service - Right to compensation from the vehicle manufacturer on the basis of tortious liability - Ground for exemption - Unavoidable error on the part of the manufacturer as regards the unlawfulness of the defeat device - Principle of effectiveness - Adequate compensation for the loss or damage - Method of calculating compensation - Compensation bracket)
(C/2025/5067)
Language of the case: German

Referring court

Landgericht Ravensburg

Parties to the main proceedings


Applicants: CM, DS

Defendant: Volkswagen AG

Operative part of the judgment







1.


Article 18(1), Article 26(1) and Article 46 of Directive 2007/46/EC of the European Parliament and of the Council of 5 September 2007 establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles (Framework Directive), as amended by Commission Regulation (EC) No 385/2009 of 7 May 2009, read in conjunction with Article 5(2) of Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20 June 2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information,
must be interpreted as precluding, in the context of an action for compensation brought by the purchaser of a motor vehicle for loss or damage caused by the presence in that vehicle of an unlawful defeat device, within the meaning of that Article 5(2), the vehicle manufacturer from being able to rely, as a ground for exemption from its liability in that respect, on the existence of an unavoidable error as regards the unlawfulness of that device on account of the fact that EC type-approval of that device or of the vehicle equipped with it was granted by the competent national authority, or that that authority, had it been asked to do so by the manufacturer, would have confirmed that manufacturer’s legal assessment as regards the alleged lawfulness of the defeat device concerned.










2.


Article 4(1) and Article 5(2) of Regulation No 715/2007 and Article 10(1) of Commission Regulation (EC) No 692/2008 of 18 July 2008 implementing and amending Regulation No 715/2007, as amended by Commission Regulation (EU) No 566/2011 of 8 June 2011,
must be interpreted as requiring that the purchaser of a vehicle have a right to compensation against the vehicle manufacturer where that purchaser has suffered loss or damage due to an unlawful defeat device, within the meaning of that Article 5(2), installed by that manufacturer by means of a software update after the grant of EC type-approval for that vehicle.










3.


EU law must be interpreted as not precluding, first, the deduction from the amount of compensation due to the purchaser of a vehicle equipped with an unlawful defeat device, within the meaning of Article 5(2) of Regulation No 715/2007, who has suffered loss or damage caused by that device, of an amount corresponding to the benefit derived from the use of that vehicle and, secondly, a limitation of that compensation to an amount representing 15 % of the purchase price of the vehicle, provided that that compensation constitutes adequate compensation for the loss or damage suffered.






(1)  OJ C, C/2024/1393.


ELI: http://data.europa.eu/eli/C/2025/5067/oj
ISSN 1977-091X (electronic edition)