VW exec sees US fixes soon in emissions test cheating

The top executive of the Volkswagen brand worldwide says he’s optimistic that US environmental regulators will approve fixes within the coming weeks or months for diesel engines that cheat on emissions tests.

The Justice Department sued Volkswagen on Monday over emissions-cheating software found in almost 600,000 vehicles sold in the United States, potentially exposing the company to billions of dollars in penalties for clean air violations. Monday’s legal action doesn’t include criminal charges against Volkswagen or its executives, and federal prosecutors are in the midst of a separate criminal investigation in to the auto maker.

“As we look towards 2016, we are committed to rebuilding trust in the brand and would like to thank our customers and dealers for their continued patience and loyalty”, said Mark McNabb, Volkswagen’s U.S. COO.

Diess says VW already has received approval to fix 8.5 million cheating cars in Europe. The company has hired a U.S.-based law firm to conduct an internal investigation into the scheme.

“This peering at unit sales and new sales records makes little sense from my point of view”, the CEO said.

As their fellow automotive giants reported record year-end sales numbers in the U.S., Volkswagen disclosed another monthly loss as it continues to deal with the scandal over its diesel emissions. “Defeat devices,”according to reports, were able to recognize when a vehicle was being tested and reduced emissions during the test, but the vehicles were actually emitting up to 40 times more nitrogen oxide than allowed under U.S. law”.

Although such US lawsuits are typically settled at a fraction of the theoretical maximum penalty, analysts said the size of the claim meant Volkswagen (VW) could face a larger bill than previously anticipated.

Volkswagen AG fell the most in two months after the USA government filed a lawsuit seeking multi-billion dollar penalties and faulted the German carmaker for a lack of progress fixing cars with rigged engines. “So far, recall discussions with the company have not produced an acceptable way forward”.

“We’re alleging that they knew what they were doing, they intentionally violated the law and that the consequences were significant to health”, said a senior Justice Department official.