The US government on Monday sued Volkswagen (VW) for installing equipment on nearly 600,000 diesel cars that intentionally subverted clean-air regulations, resulting in excess harmful emissions.
Civil penalties in the lawsuit, filed by the US Department of Justice (DOJ) on behalf of the Environmental Protection Agency (EPA), could run to more than US$20 billion, according to the suit.
The complaint alleges that the big German automaker intentionally installed electronic “defeat devices” on its diesel Volkswagen, Audi and Porsche passenger vehicles that met tough US environmental tests during official reviews, but spewed up to 40 times the legal levels of poisonous pollutants when on the road.
Even after US officials announced charges against Volkswagen for installing defeat devices on 2-liter diesel cars, the firm failed to disclose similar violations on 3-liter diesel cars. However, on Nov. 23 last year, Volkswagen acknowledged that the larger cars also employed a defeat device, the complaint said.
In all, the company has now conceded that the emissions-cheating technology was employed on about 11 million diesel engines worldwide, in vehicles of the model years 2009 through 2015.
The government also said in a 31-page complaint that its efforts to investigate the issue were “impeded and obstructed by material omissions and misleading information provided by VW.”
The DOJ did not name a specific overall penalty it was seeking. However, it laid out per-car penalties of up to US$37,500, and up to US$2,750 per defeat device, which could take the cost of the suit for Volkswagen to well past US$20 billion.
Monday’s complaint is distinct from a parallel criminal investigation of Volkswagen by the DOJ.
“Car manufacturers that fail to properly certify their cars and that defeat emission control systems breach the public trust, endanger public health and disadvantage competitors,” DOJ Assistant Attorney General John Cruden said.
“The United States will pursue all appropriate remedies against Volkswagen to redress the violations of our nation’s clean air laws alleged in the complaint,” he added.
EPA Assistant Administrator for Enforcement and Compliance Assurance Cynthia Giles said the lawsuit would hold Volkswagen accountable and set the case on a “path to resolution.”
“So far, recall discussions with the company have not produced an acceptable way forward,” Giles said. “These discussions will continue in parallel with the federal court action.”
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