Volkswagen Ordered To Recall 500,000 cars, Faces $18 Billion Fine Over Emissions Defeating Software

[ThePointblank]

From The New York Times:

 

http://www.nytimes.com/2015/09/19/business/volkswagen-is-ordered-to-recall-nearly-500000-vehicles-over-emissions-software.html

 

WASHINGTON — The Obama administration on Friday directed Volkswagen to recall nearly a half-million cars, saying the automaker illegally installed software in its diesel-power cars to evade standards for reducing smog.

 

The Environmental Protection Agency accused the German automaker of using software to detect when the car is undergoing its periodic state emissions testing. Only during such tests are the cars’ full emissions control systems turned on. During normal driving situations, the controls are turned off, allowing the cars to spew as much as 40 times as much pollution as allowed under the Clean Air Act, the E.P.A. said.

 

“We expected better from Volkswagen,” said Cynthia Giles, the E.P.A.’s assistant administrator for the Office of Enforcement and Compliance. She called the automaker’s actions “a threat to public health.”

 

Agency officials issued the car company a notice of violation and said it had admitted to the use of a so-called defeat device. The recall involves 4-cylinder Volkswagen and Audi vehicles from model years 2009-15.

 

A spokeswoman for Volkswagen confirmed that the company had received the notice and said the automaker was cooperating with the investigation. She declined to comment further on the case.

The software was designed to conceal the cars’ emission of the pollutant nitrogen oxide, which contributes to the creation of ozone and smog. The pollutants are linked to a range of health problems, including asthma attacks, other respiratory diseases and premature death.

 

Experts in automotive technology said that disengaging the pollution controls on a diesel-fueled car can yield better performance, including increased torque and acceleration.

“When the pollution controls are functioning on these vehicles, there’s a trade-off between performance and emissions,” said Drew Kodjak, executive director of the International Council on Clean Transportation, a research group. “This is cutting corners.”

 

It was Mr. Kodjak’s group, in conducting research on diesel vehicles, that first noticed the discrepancy between Volkswagen’s emissions in testing laboratories and on the road. They brought the issue to the attention of the E.P.A., which conducted further tests on the cars, and ultimately discovered the use of the defeat device software.

The recall covers roughly 482,000 diesel passenger cars sold in the United States since 2009.

 

Affected diesel models include the 2009-15 Volkswagen Jetta, 2009-15 Beetle, 2009-15 Golf, 2014-15 Passat and 2009-15 Audi A3.

 

Friday’s notice of violation was the Obama administration’s “opening salvo” in the Volkswagen case, said Thomas Reynolds, an E.P.A. spokesman. The Justice Department’s investigation could ultimately result in fines or penalties for the company. Under the terms of the Clean Air Act, the Justice Department could impose fines of as much as $37,500 for each recalled vehicle, for a possible total penalty of as much as $18 billion.

 

Ouch, I wonder who at Volkswagen approved installing the emissions testing defeating software and who's going to loose their job as a result. Being forced to recall half a million cars to be retrofitted, plus a potential $18 billion fine is going to cost dearly. Also, there is a potential that whatever Volkswagen does to disable the software could end up degrading performance, which could lead to a costly class action lawsuit from owners as well.

Update 9/24/2015: To include timeline of events for background:

 

May 30 2014:

Study by International Council on Clean Transportation with equipment from the West Virginia University (WVU) Centre for Alternative Fuels, Engines and Emission finds that VW's 2.0L 4 cylinder TDI diesel cars produce significantly higher emissions than that was permitted or stated: http://www.theicct.org/use-emissions-testing-light-duty-diesel-vehicles-us

 

WVU alerts California Air Resources Board (CARB) and the Environmental Protection Agency (EPA) to the issue.

 

Summer 2014: VW continues to assert to CARB and the EPA that the increased emissions from these vehicles could be attributed to various technical issues and unexpected in-use conditions.

 

Late 2014:

Volkswagen begins to work on an ECU recall to fix emissions after being notified. CARB does testing to confirm the results, which still showed that 4 cylinder Volkswagen diesel vehicles failed emissions testing.

 

December 2014:

Volkswagen begins to issue voluntary recall on affected models, reprogramming the ECU in North American TDI vehicles.

 

May 6 2015:

CARB, in coordination with the EPA, conducts follow-up testing of these vehicles both in the laboratory and during normal road operation to confirm the effectiveness of the fix provided by Volkswagen's recall. The results show limited effectiveness.

 

Sept 3 2015: With a threat from CARB and the EPA that they would not issue certificate of conformity for Volkswagen’s 2016 diesel vehicles, effectively preventing sales of 2016 model year diesels until the manufacturer can adequately explain the anomalous emissions, Volkswagen admits to designing and installed a defeat device in these vehicles.

 

Sept 18 2015:

EPA announces a violation of Clean Air Act by Volkswagen after they confirmed discovery of defeat device on a number of 4 cylinder diesel Volkswagen models: http://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/dfc8e33b5ab162b985257ec40057813b!opendocument

 

CARB issues a compliance letter to Volkswagen, detailing violations and concerns: http://www.arb.ca.gov/newsrel/in_use_compliance_letter.htm

 

Volkswagen issues "Stop Sales" order to all dealers for all new TDI models affected, plus TDI versions of the Audi A3. The stop sales order also includes used vehicles as well.

 

Sept 19 2015:

Consumer Reports pulls "Recommended" rating on all Volkswagen vehicles affected: http://www.autoguide.com/auto-news/2015/09/consumer-reports-pulls-recommended-rating-for-vw-tdi-models.html

 

Sept 20 2015:

Volkswagen CEO Martin Winterkorn issues an apology, orders an independent investigation into company by a third party: http://media.vw.com/release/1066/

Sept 21 2015:

Volkswagen looses 15 billion euros, or $16.9 billion US in market value as a result of the emissions scandal:http://www.autoguide.com/auto-news/2015/09/volkswagen-just-lost-billions-in-post-scandal-stock-slide.html

 

Volkswagen Canada announces a stop sale order for all Volkswagen models affected: http://www.autos.ca/general-news/vw-alleged-to-have-rigged-diesel-engines-for-cleaner-emissions-test-results/

 

Sept 22 2015:

Volkswagen admits up to 11 million cars worldwide could be affected by the emissions cheat. 6.5 billion euros (or $7.3 billion US) has been set aside by Volkswagen to deal with the fallout. CEO Martin Winterkorn is rumoured to be stepping down as a result of the scandal: http://www.tflcar.com/2015/09/vw-tdi-dieselgate-scandal-affects-11-million-cars-vw-ceo-to-step-down-news/

 

A class-action lawsuit is filed against Volkswagen by a US law firm as a result of the ongoing scandal: http://www.autoguide.com/auto-news/2015/09/volkswagen-just-got-hit-with-a-class-action-lawsuit.html

 

The EPA is reviewing the test results for Volkswagen's 3.0L V6 diesel engine as a result as scandal, which could affect other Volkswagen group brands, Audi and Porsche: http://www.motorauthority.com/news/1100154_vw-troubles-could-become-audi-and-porsche-problems

 

Sept 23 2015:

Volkswagen CEO Martin Winterkorn resigns over the emissions scandal.

 

Environment Canada announces a probe into the Volkswagen emissions scandal: http://www.theglobeandmail.com/report-on-business/international-business/european-business/pressure-builds-on-vw-ceo-as-emissions-cheating-probe-spreads/article26468625/

 

Sept 24 2015:

German Transport Minister confirms European Volkswagen vehicles are also affected by the emissions cheat: http://www.autocar.co.uk/car-news/industry/european-vws-are-affected

 

Volkswagen US Chief and a number of other executives are rumoured to be dismissed as a result of the scandal: http://www.autoguide.com/auto-news/2015/09/vw-us-chief-other-execs-expected-to-be-dismissed.html

[soaringchicken]

wow, I thought better of Volkswagon 

[Lethal Seraph]

That hefty fine though. Jesus!

[Manny Calavera]

 

 who's going to loose their job as a result

Since this was really dick move from Volkwagon, i suppose they will just fire factory workers, cut wages and stuff ya know..

[Totallycasual]

That's really messed up, better sell my shares!!! lol 

[Bogica]

wow, I thought better of Volkswagon 

 

 

That's really messed up, better sell my shares!!! lol 

 

It's a good thing you two don't keep track of how many recalls GM, Toyota (especially these asswipes) do. The numbers are in millions.

Toyota even released an entire series where the throttle would get stuck and that was just a few years ago...

[PerfectTemplar]

That hefty fine though. Jesus!

The only way to fine multi-billion dollar companies is and should be with billions of dollars. Otherwise they just brush it off.

[Bouzoo]

Read about this and I don't quite believe it. I believe that emissions are higher but 40 times? I'm skeptical about that part. Not to offend anyone, but it's ironical when the US tells you that your cars are producing too much pollution.

[soaringchicken]

It's a good thing you two don't keep track of how many recalls GM, Toyota (especially these asswipes) do. The numbers are in millions.

Toyota even released an entire series where the throttle would get stuck and that was just a few years ago...

Yeah but volkswagon did this on purpose. 

[Bogica]

Yeah but volkswagon did this on purpose. 

I doubt they did. They are way too profitable and doing way too good to risk doing something stupid like that. Besides, that 40x pollution sounds like such a bullshit line. I'm not defending them, don't get me wrong, but I smell bullshit a mile away...

[brownninja97]

the VAG is in trouble, thats a major fine.

[Trik'Stari]

Since this was really dick move from Volkwagon, i suppose they will just fire factory workers, cut wages and stuff ya know..

Sounds like the worst part of this to me.

 

Nevermind the people that will be put out of work as a result of this, WON'T SOMEBODY PLEASE THINK OF THE POLAR BEARS?!

 

If a car would be so inefficient as to produce 40 times the pollution that is deemed acceptable in other cars, no one would have bought it in the first place due to outlandishly bad fuel efficiency.

 

Yeah VW did something wrong, but was there a need to exaggerate that much?

 

When it comes to pollution and climate change? Yes.

[.spider.]

Sadly nobody in the EU cares about "special software" in cars.

[BernardoSLR]

If this is true, which it looks like it is, it's shameful.

[Trik'Stari]

Its good that you care about pollution and climate change. But that good is all for nought if you think its ok to mislead and deceive others.

I was making a comment about how what we see reported about climate change, being about as accurate as the report that said there were WMD's in Iraq.

 

In both situations, the reality is "lie through your teeth, make money".

[linuxfan66]

I was making a comment about how what we see reported about climate change, being about as accurate as the report that said there were WMD's in Iraq.

 

In both situations, the reality is "lie through your teeth, make money".

agreed. I have serious doubts (as do many scientists) if some emissions trading work as claimed. particularly planting trees due to time needed to yield results. And the maths of how much co2 is produced and how much the counters actually remove isnt exactly fullly trusted. I think co2 sequetrastion is going to be much better if we can make it work..

[Trik'Stari]

agreed. I have serious doubts (as do many scientists) if some emissions trading work as claimed. particularly planting trees due to time needed to yield results. And the maths of how much co2 is produced and how much the counters actually remove isnt exactly fullly trusted. I think co2 sequetrastion is going to be much better if we can make it work..

I honestly think our effect on the environment, as far as climate change goes, is being grossly over-stated so that green companies can get a shit load of money from consumers and governments. I don't deny climate change is happening, I merely doubt how much we have effected it.

 

Just an FYI, for those who have no knowledge of Earth's history, climate change has happened before, before humanity existed for that matter. It IS a naturally occurring process.

[linuxfan66]

I honestly think our effect on the environment, as far as climate change goes, is being grossly over-stated so that green companies can get a shit load of money from consumers and governments. I don't deny climate change is happening, I merely doubt how much we have effected it.

 

Just an FYI, for those who have no knowledge of Earth's history, climate change has happened before, before humanity existed for that matter. It IS a naturally occurring process.

i hontestly agree with you on that. i do think antipollution is good though. Also i think if we have caused it as much as claimed it may be unstoppable due to human nature. We should plan for what will happen when it does rather than waste our time stopping global warming which is barely working and costs a mint.

[Trik'Stari]

i hontestly agree with you on that. i do think antipollution is good though. Also i think if we have caused it as much as claimed it may be unstoppable due to human nature. We should plan for what will happen when it does rather than waste our time stopping global warming which is barely working and costs a mint.

It's not that it's barely working, it's that it cannot work. You might as well try and stop the tide.

 

Do we need to pollute less? Of course. But our bigger concern needs to be space travel. No amount of technology will make any planet forever habitable.

[techswede]

Woooooooooooooooooooooooooow. Just barely dodged that bullet  :lol: 08 golf

+ petrol and not in the us.

The title scared me a bit though

[HippY]

It's a good thing you two don't keep track of how many recalls GM, Toyota (especially these asswipes) do. The numbers are in millions.

Toyota even released an entire series where the throttle would get stuck and that was just a few years ago...

but then again these cars are not recalled because they are faulty, but because they were designed to cheat on the emission test.

For example if you go on VW US youtube site, you will see that all the ads for diesel cars are taken down due to the fact that now they are false as hell

[linuxfan66]

It's not that it's barely working, it's that it cannot work. You might as well try and stop the tide.

 

Do we need to pollute less? Of course. But our bigger concern needs to be space travel. No amount of technology will make any planet forever habitable.

unless negative energy mass shows up the human race pretty much cant leave...(and thats assuming warp drives dont require impossible energy requirements like energy equivalent to mass bigger than our whole planet)

[Trik'Stari]

unless negative energy mass shows up the human race pretty much cant leave...(and thats assuming warp drives dont require impossible energy requirements like energy equivalent to mass bigger than our whole planet)

If that's the case (and I refuse to believe that inter-stellar travel is impossible) then life is utterly pointless, and doomed to failure, so we might as well give up on trying to fix the planet, or pollution, and just get down to a global orgy.

[Sauron]

what is even the point if the emission control systems are there  :blink: I doubt most VW customers care much about slightly higher performance

[linuxfan66]

If that's the case (and I refuse to believe that inter-stellar travel is impossible) then life is utterly pointless, and doomed to failure, so we might as well give up on trying to fix the planet, or pollution, and just get down to a global orgy.

lets make the assumption it is. chances are we will destroy ourselves with nuclear war first...