No (Four) Pot of Gold: Some Volkswagen Diesel Owners Are Stuck Between Borders

Steph Willems
by Steph Willems

U.S. owners of illegally polluting Volkswagen diesels have already flown to sunny vacation spots or picked up a new vehicle with the help of buyback and compensation checks. North of the border, over 100,000 Canadians who own a 2009-2016 TDI model are waiting for their cut of a $2.1 billion settlement.

However, Volkswagen’s “we’re sorry” gravy train isn’t rolling into everyone’s driveway. Some owners are finding that their vehicles are stuck in a cross-border limbo.

Consider the plight of a Toronto-area woman who picked up a used fifth-generation Jetta in July of 2015. Just two months after getting into her new ride, Jacqueline Charlesworth — like so many others — discovered that her vehicle was a rolling pariah. And, like so many others, Charlesworth hoped to drop the model in exchange for cash.

Unfortunately, taking part in VW’s self-shakedown proved difficult. Seventeen months after the scandal went public, Charlesworth still owns the car, with no guarantee of a payment. The problem lies in the vehicle’s American VIN, and the fact that it’s now registered in Canada.

“I’m really stuck in between two worlds,” the owner told CBC.

Charlesworth found she wasn’t able to take part in the Canadian settlement, as her car hails from the U.S. No problem, as Volkswagen offered her $13,425 from the American settlement pot. Confident in knowing that her car would soon be gone and her compensation money would soon be in the bank, she bought a replacement vehicle.

That’s when her plans went south.

Two weeks ago, Volkswagen sent a letter explaining that it couldn’t offer her the money, as her car was registered in Canada before the September 2015 cut-off date. That’s a big problem, as Charlesworth planned to use the money to support her family. Since receiving the letter, she has attempted to sell the car online, only to find that no one wants to buy a “scandal car.”

Meanwhile, she hasn’t heard anything more from the company, nor has she heard back from lawyers contacted in an attempt to recoup the cost of her Jetta. Volkswagen Canada hasn’t replied to CBC‘s requests to find out if the automaker plans to bring marooned owners like Charlesworth into the Canuck settlement.

The number of owners trapped in the cross-border loophole is small, but their headache isn’t a minor one. According to David O’Connor, partner at Roy O’Connor LLP, one of many firms working on a class action lawsuit against Volkswagen, 15 to 20 clients have contacted law offices in Canada for this exact problem.

[Image: Volkswagen of America]

Steph Willems
Steph Willems

More by Steph Willems

Comments
Join the conversation
4 of 10 comments
  • Notwhoithink Notwhoithink on Feb 13, 2017

    1. She can keep it. 2. If she can find an American to buy it, they can flip it to VW for the settlement offer. But she will have to sell it for well less than VW is offering for it. 3. If she has the stomach for it, she can file a suit independent of the two class action suits (aka, opting out of the settlement class) and probably get more money back than she would by taking either settlement.

    • Kyree Kyree on Feb 13, 2017

      That's just it, though...I think the fact that it was registered in Canada prior to the scandal's reveal takes it out of the running for the American settlement, and it doesn't qualify for the Canadian settlement because it has an American VIN and was originally sold in the 'States. Basically, VW has determined that every vehicle that was registered (or purchased, but pending registration) on the day of September 18, 2015 is eligible for the settlement. Apparently, that means "registered in the United States". Since hers was not, it's not part of the class-action settlement, and wouldn't be even if someone else (like an American) purchased it and sold it.

  • Jalop1991 Jalop1991 on Feb 13, 2017

    I don't understand: "Two weeks ago, Volkswagen sent a letter explaining that it couldn’t offer her the money, as her car was registered in Canada before the September 2015 cut-off date. That’s a big problem, as Charlesworth planned to use the money to support her family." So, she bought a car. Somehow she must have thought she hit a lottery? In 2015, she bought the car. Other than her inability to sell it, how is it that her situation now is different than if it were not a TDI? Would she have otherwise sold it because she found herself unexpectedly needing cash? Details, details.

    • Rpn453 Rpn453 on Feb 14, 2017

      It sounds like she used all her money to buy a replacement car. Not sure why she was in such a rush to have a second vehicle if money was tight. I suppose she could sell the replacement car for funds and drive the TDI until this is sorted.

  • The Oracle Well, we’re 3-4 years in with the Telluride and right around the time the long term durability issues start to really take hold. This is sad.
  • CoastieLenn No idea why, but nothing about a 4Runner excites me post-2004. To me, they're peak "try-hard", even above the Wrangler and Gladiator.
  • AZFelix A well earned anniversary.Can they also attend to the Mach-E?
  • Jalop1991 The intermediate shaft and right front driveshaft may not be fully engaged due to suspected improper assembly by the supplier. Over time, partial engagement can cause damage to the intermediate shaft splines. Damaged shaft splines may result in unintended vehicle movement while in Park if the parking brake is not engagedGee, my Chrysler van automatically engages the parking brake when we put it in Park. Do you mean to tell me that the idjits at Kia, and the idjit buyers, couldn't figure out wanting this in THEIR MOST EXPENSIVE VEHICLE????
  • Dukeisduke I've been waiting to see if they were going to do something special for the 60th Anniversary. I was four years old when the Mustang was introduced. I can remember that one of our neighbors bought a '65 coupe (they were all titled as '65 models, even the '64-1/2 cars), and it's the first one I can remember seeing. In the '90s I knew an older gentleman that owned a '64-1/2 model coupe with the 260 V8.
Next