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US claims Volkswagen dodged emission norms, orders recall

Carmaker could face fines of $37,500 for each recalled vehicle, or a possible overall penalty of $18 billion

US claims Volkswagen dodged emission norms, orders recall

Coral DavenportJack Ewing Washington
US authorities have directed Volkswagen to recall nearly half a million cars, saying the automaker illegally installed software in its diesel-power vehicles to evade standards for reducing smog. Under the terms of the Clean Air Act, the US justice department could impose fines of as much as $37,500 for each recalled vehicle, a possible total penalty of as much as $18 billion.

The US Environmental Protection Agency (EPA) accused the German automaker of using software to detect when the car undergoes its periodic state emission testing. Only during such tests are the cars' full emission control systems turned on. During normal driving situations, the controls were off, allowing the cars to spew as much as 40 times as much pollution as allowed under the Clean Air Act, the EPA said.

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

"We expected better from Volkswagen," said Cynthia Giles, the EPA'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 four-cylinder Volkswagen and Audi vehicles from model years 2009-15.

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

Experts said disengaging the pollution controls on a diesel-fuelled car could 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."

Through the next year, EPA officials said, owners of the affected vehicles should expect to receive recall notices from the company, including information about how to get their cars repaired free of cost. The recall covers roughly 482,000 diesel passenger cars sold in the US since 2009.

AGGRESSIVE STANCE ON VIOLATIONS
  • On Thursday, General Motors agreed to pay the US a $900-mn penalty for failing to disclose defects in ignition switches
  • In 2013, Toyota recalled more than 10 mn cars and agreed to pay the US a $1.2-bn settlement, admitting it concealed information
  • In November 2014, Hyundai and Kia agreed to pay a combined $300 mn as part of a settlement for overstating fuel-economy standards
  • In 2007, the US asked Casper’s Electronics to stop selling ‘defeat devices’ and pay a $74,000 civil penalty

Friday's notice of violation was the US administration's "opening salvo" in the Volkswagen case, said Thomas Reynolds, an EPA spokesman.

The notice of violation is part of a broader, more aggressive enforcement effort by regulators of the auto sector. Analysts and activists said it was intended to send a message to automakers that they would be harshly treated for compromising federal rules.

"This is several steps beyond the violations we've seen from other auto companies," said Tyson Slocum, director of the energy programme at Public Citizen, a consumer advocacy group. "They appear to have designed a system with the intention to mislead consumers and the government. If that's proven true, it's remarkable and outrageous. It would merit a heck of a lot more than just a recall and a fine. We would see criminal prosecution."
©2015 The New York Times News Service
 

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First Published: Sep 19 2015 | 11:15 PM IST

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