THE parent company of Volkswagen Group Australia, Volkswagen AG, has told an Australian Federal Court judge that it should not have to take part in the proceedings being brought by the Australian Competition and Consumer Commission (ACCC) in which the regulator is alleging the German company seriously misled Australian motorists and the Australian public.

The action by the ACCC has been made against VW AG as the first respondent and Volkswagen Group Australia as the second respondent.

In the hearing brought by the ACCC over the VW diesel engine emission scandal, which commenced in the Federal Court last week, an application was made asserting that VW AG did not recognise the right of the court to include it in the proceedings and that it should not have to participate in the hearing.

Before the case got under way P.J. Brereton SC for VW AG signalled to Justice Foster the view that VW AG should not be involved.

An angry Justice Foster asked: “Why is that Mr Brereton? What does the company think it is doing?”

Mr Brereton: “The position is this your honour. The company has no intention of playing games, there’s no intention of forcing…”

Justice Foster (interrupting): “Well, they’re doing it.”

After some discussion Justice Foster said: “Well, I will tell you what, Mr Brereton, if that corporation forces me to hear that application (that it should not be involved) and I decide against it (the application) there will be really serious consequences … given the history of this matter, not only here, but around the world.”

“Now you need to make that very clear to the parent company,” Justice Foster said.

Justice Foster then told Mr Brereton he would adjourn the court for five minutes for him “to make it clear to those instructing you” that if he was forced to hear the application “there would be serious consequences if your client (VW AG) loses it”.

Justice Foster told the court: “From where I sit right now, they are playing games.

“It really is incredibly annoying that an issue that really shouldn’t be an issue is being raised by a corporation of the size and repute of Volkswagen,” he said.

After the adjournment, in which Mr Brereton was unable to obtain instructions, Mr Brereton asked the judge if he had read the submission.

Justice Foster: “I’ve read it. That’s why I am so unhappy, Mr Brereton. I didn’t just get unhappy because nothing happened (during the adjournment); I got unhappy because of the position this company took, which, to me, is unacceptable in this day and age in this court.”
Justice Foster then made an order that said that unless Clayton Utz, the firm acting for VW AG, informed the Australian government solicitor that VW AG would take part in the case by September 23, he would hear the application for VW AG not to take part on October 12.

The judge also made an order that copies of documents that VW AG was refusing to supply the ACCC should be lodged with the consumer watchdog by the end of the month.

Maurice Blackburn class actions principal Jason Geisker, who is driving a class action on behalf of 100,000 VW owners in Australia and who was present in the court, said in a press release: “Volkswagen AG continues to disregard Australian motorists and our legal system.

“The arrogance of the global behemoth in acting as though it sets the legal rules and systems in this country – or any country for that matter – is astonishing,” Mr Geisker said.

By John Mellor