Volkswagen (VW) has reached a £193m settlement with UK drivers involved in a class action lawsuit over the so-called dieselgate scandal in 2015.

The German carmaker, which had refused to compensate the owners of diesel models affected in the UK citing EU law, faced claims brought on behalf of 91,000 people by several legal firms.

The action was granted in 2020 when the High Court ruled that emissions-testing software, installed in vehicles that was designed to cheat emissions testing regimes, amounted to unlawful “defeat devices”.

The claimants argued that the VW Group, which also includes the Audi, Seat and Skoda brands, misled consumers as nitrogen dioxide levels were lowered under the lab conditions used at the time.

VW, which made no admission of liability under the terms of the settlement, said it decided to bring the matter to a conclusion over fears of a protracted and costly legal battle.

The company is to make a separate contribution to the claimants’ fees.

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