U.S. sues Volkswagen over emissions-cheating software in diesel cars

The complaint, filed in Detroit, Michigan, alleges that Volkswagen breached the Clean Air Act, a major environmental law aimed at reducing air pollution, by selling almost 600,000 diesel-engine vehicles in the USA that were equipped with devices that deliberately circumvented US regulations on emissions, “resulting in harmful air pollution”. That means the fines could quickly top $18 billion if VW has to pay the full amount spelled out in the suit.

The Justice Department has also been investigating criminal fraud allegations against Volkswagen for misleading US consumers and regulators.

Back in October 2015, the Chairman and Chief Executive of the VW acknowledged publicly that the culture which led to the diesel emissions scandal is systemic throughout parts of the company, and has been in place for up to a decade and goes way beyond a small group of “rogue” engineers.

The carmakers’ vehicles were actually putting up to 40 times more pollution into the air than is allowable under US standards, the EPA has said – despite the vehicles being awarded clean emissions credentials that triggered hefty federal tax credits. However, Criminal charges would require a higher burden of proof than the civil lawsuit.

To win the civil case, the USA government does not need to prove the degree of intentional deception at Volkswagen – just that the cheating occurred, Mr Riesel said.

Even after Volkswagen first admitted to using defeat devices in certain models, the carmaker “failed to come forward and reveal” that other vehicles contained such devices, the government said.

The Justice Department did not name a specific overall penalty it was seeking.

The suit alleges Volkswagen used illegal cheating devices on diesel vehicles to change various settings in the emission control system and emit emissions that exceed standards set by the EPA.

US-listed shares of Volkswagen were down 3.3 per cent at$29.95.