Volkswagen said talks with consumer groups who were seeking compensation over excessive pollution, caused by VW’s diesel cars, had failed.
In 2015 the carmaker admitted to using manipulated engine management software to mask excessive pollution levels in its diesel cars, sparking a raft of prosecutions and lawsuits.
A VW spokesman confirmed that talks had collapsed, blaming excessive demands for fees by lawyers representing the Federation Of German Consumer Organisations (VZBV). Funke Medien was first to report that the talks had failed.
VW said it had struck a preliminary deal offering 830 million euros in compensation but that VZBW’s lawyers had insisted on 50 million euros in fees.
German consumer organisation VZBW had no immediate comment.