US EPA files lawsuit against VW over emissions scandal

Volkswagen’s earlier admissions eliminate nearly any possibility that the automaker could defend itself in court, Daniel Riesel of Sive, Paget & Riesel P.C, who defends companies accused of environmental crimes, said.

Volkswagen could face US$90 billion in fines for alleged fiddling of emissions tests for diesel cars, under a USA government lawsuit filed on Monday. Atop that, other criminal charges could still be filed by the federal government, plus many private and class-action lawsuits are expected as well, representing a possibly crippling future for Volkswagen.

“Volkswagen will continue to work cooperatively with the EPA on developing remedies to bring the TDI vehicles into full compliance with regulations as soon as possible”, Volkswagen said in a statement. It’s also seeking up to $3,750 for each piece of equipment that was put there to cheat emissions tests.

The carmaker is now conducting an internal investigation that it said will “leave no stone unturned”. Preliminary results of that review have not yet been made public.

The Department of Justice (DOJ), acting on behalf of the Environmental Protection Agency (EPA), has made allegations against the German automaker that mostly stem from the discovery that some of Volkswagen’s cars had “defeat devices” installed.

Under US laws, vehicle manufacturers are required to disclose such devices to the regulators. It can also cause premature death and damage to lung tissue.

The EPA has said the carmakers’ vehicles were actually putting up to 40 times more pollution into the air than is permitted.

“So far, recall discussions with the company have not produced an acceptable way forward”, Giles said.

On Monday, the Justice Department sued VW in a federal court over the installation of the “defeat device” software discovered last September on close to 600,000 vehicles in the United States.

Globally, 11 million vehicles have been implicated in the emissions crisis and 600,000 of those were in America, plunging the world’s biggest auto making group into crisis with falling sales and wholesale management clear-out.

While the rapid-fire news cycle regarding Volkswagen’s diesel emissions scandal may have slowed slightly, behind-the-scenes proceedings have not.