- Joined
- Oct 5, 2008
- Messages
- 127,025
- Likes
- 147,631
- Points
- 115
Volkswagen AG's admission that it cheated to make nearly half a million diesel cars appear cleaner-burning than they are leaves the automaker facing billions in fines, its executives risking criminal charges and its US expansion plans in peril.
VW admitted systematically cheating on US air pollution tests for years, the Environmental Protection Agency announced Friday in citing violations that could add up to $US18 billion in fines. The company said it has also heard from the Justice Department, which the EPA said could pursue criminal prosecution.
The German automaker has struggled to gain a foothold in the world's second-biggest car market with a strategy built in part on touting the efficiency of fun-to-drive "clean diesel" vehicles now shown to be anything but.
"It's a huge black eye for Volkswagen," said Matt DeLorenzo, managing editor for news at Kelley Blue Book in Irvine, California. Consumer Reports magazine reacted by suspending its "recommended" rating of two diesel models.
Diesel versions of the popular Beetle, Golf, Jetta and Passat comprise more than a quarter of the brand's sales in the US and are a vital part of the company's strategy for meeting tougher US fuel economy standards going into effect in coming years. More than other carmakers, VW has chosen to focus on diesel technology instead of electrics or hybrids.
"They were counting heavily on diesels to meet the fuel-economy numbers," DeLorenzo said. "This brings that whole strategy into question."
Defeat device
Volkswagen admitted it sold 2009-2015 diesel Volkswagen and Audi cars with software that turns on full pollution controls only when the car is undergoing official emissions testing, the EPA said, calling the algorithm a "defeat device." During normal driving, the cars pollute 10 times to 40 times the legal limits, the agency estimated.
http://www.afr.com/business/transpo...sel-cheating-a-huge-black-eye-20150919-gjqlp1
VW admitted systematically cheating on US air pollution tests for years, the Environmental Protection Agency announced Friday in citing violations that could add up to $US18 billion in fines. The company said it has also heard from the Justice Department, which the EPA said could pursue criminal prosecution.
The German automaker has struggled to gain a foothold in the world's second-biggest car market with a strategy built in part on touting the efficiency of fun-to-drive "clean diesel" vehicles now shown to be anything but.
"It's a huge black eye for Volkswagen," said Matt DeLorenzo, managing editor for news at Kelley Blue Book in Irvine, California. Consumer Reports magazine reacted by suspending its "recommended" rating of two diesel models.
Diesel versions of the popular Beetle, Golf, Jetta and Passat comprise more than a quarter of the brand's sales in the US and are a vital part of the company's strategy for meeting tougher US fuel economy standards going into effect in coming years. More than other carmakers, VW has chosen to focus on diesel technology instead of electrics or hybrids.
"They were counting heavily on diesels to meet the fuel-economy numbers," DeLorenzo said. "This brings that whole strategy into question."
Defeat device
Volkswagen admitted it sold 2009-2015 diesel Volkswagen and Audi cars with software that turns on full pollution controls only when the car is undergoing official emissions testing, the EPA said, calling the algorithm a "defeat device." During normal driving, the cars pollute 10 times to 40 times the legal limits, the agency estimated.
http://www.afr.com/business/transpo...sel-cheating-a-huge-black-eye-20150919-gjqlp1
