Volkswagen faces billions in penalties as U.S. sues for environment violations

Reuters ^ | 1-4-2016 | JULIA EDWARDS AND JOEL SCHECTMAN

[Citizen Zed]

The U.S. Justice Department on Monday filed a civil lawsuit against Volkswagen AG for allegedly violating the Clean Air Act by installing illegal devices to impair emission control systems in nearly 600,000 vehicles.

The allegations against Volkswagen, along with its Audi and Porsche units, carry penalties that could cost the automaker billions of dollars, a senior Justice Department official said. VW could face fines in theory exceeding $90 billion - or as much as $37,500 per vehicle per violation of the law, based on the complaint. In September, government regulators initially said VW could face fines in excess of $18 billion.

"The United States will pursue all appropriate remedies against Volkswagen to redress the violations of our nation's clean air laws," said Assistant Attorney General John Cruden, head of the departments environment and natural resources division.

The Justice Department lawsuit, filed on behalf of the Environmental Protection Agency, accuses Volkswagen of four counts of violating the U.S. Clean Air Act, including tampering with the emissions control system and failing to report violations.

The lawsuit is being filed in the Eastern District of Michigan and then transferred to Northern California, where class-action lawsuits against Volkswagen are pending.

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

The Justice Department has also been investigating criminal fraud allegations against Volkswagen for misleading U.S. consumers and regulators. Criminal charges would require a higher burden of proof than the civil lawsuit.

The civil lawsuit reflects the expanding number of allegations against Volkswagen since the company first admitted in September to installing cheat devices in several of its 2.0 liter diesel vehicle models.

[dhs12345]

That makes sense. A car will pollute more as wears and ages. Thanks.

So, all of the VW customers will probably have a problem passing emissions as their cars get a few miles on them?

How long have VW been tweaking the engines to pass? It would be interesting to see if cars are indeed failing. Those cars might be reaching the 100K miles limit.

One thing that is always lacking when someone designs a test is real test world results. It is never exactly clear if there is too much margin or not enough. It is usually a statistically educated guess. Worst of all, the test designers will probably not go back and check the real world results to determine if there is too much margin. Too much margin means unnecessary cost.

Also, I am not defending VW but more importantly questioning the test itself. How often have we seen the government mandate something that doesn't make sense but people continue doing it because the “government says we must.”

Ethanol is a good example. I predict that Obamacare will be another.

[mythenjoseph]

Just got back from a trip down to Massachusetts in my “1971 International Harvester 1210” what are these “cafe” standards you speak of?.....50 dollars a year to renew registration....13 dollars a month as an add on to the current insurance policy....paid 2600.00 dollars 3 years ago...put in electronic ignition and rebuilt the carb’...hauls anything ....all basic systems and not ONE computer....cheaper / safer and the admiration from people who have never seen this American made truck is priceless....as far as the green money sucking just-us department they can go fornicate themselves. I think it’s fantastic that VW said screw these idiotic rules and then simply typed some code to thwart the scam of emissions ....the federal government IS the enemy! Ask yourself a question ....where would/will the billions go if they ever get collected?...some other “green” project to save ourselves from our own selves?

[Tennessee Nana]

Senator Bob Corker forced VW on us here in SE TN..

We could have had an American company but he didn’t want them...he wanted the foreign company...

The plant is near Chattanooga..

Tennessee had to shell out millions of dollars to VW to get them to come here...

Now this...

For all the SS only 2,000 local people got jobs...we had to also pay for the German management and their families to relocate here ands the kids are in our schools...

now the local employees will be he first to be laid off...

Thanks Bob...

[Chickensoup]

As a VW owner with one of the problem cars, I would like them to pay the troll some reasonable amount and leave it be.

IF that doesn’t work, pull out of the states. I would not blame them. there are other markets out there.

[dhs12345]

Exactly. Pretty stupid when you realize that the standard throughout human history has been for humans to “eke out an existence.”

Starvation, poor health, parasite and dangers of all kinds. Heck, our ancestors didn't live beyond 35 years of age. Just old enough to create the next generation and make them self sufficient and then die.

We have it pretty damn good and yet people are willing to give it all away. And make no bones about it, environmentalists believe that there are too many humans and that we are burden to the planet and other species and if there were fewer humans that that would be just fine.

[SunkenCiv]

So, which Ass't AG is working on the Gold King Mine disaster, and investigating the EPA's role in the largest freshwater contamination in history? No one? What a surprise.

[Fresh Wind]

At what point does a regulatory agency like the EPA decide that the “problem” is solved, and no more progress is necessary, or that going further has become so expensive and destructive to the health of the nation that there is no justification for proceeding?

The answer is “never”.

To admit that the job is done is suicide for a governmental agency. It means reduced funding and reductions in personnel levels.

No, what happens is that the regulations are gradually but constantly and eternally tightened forcing the affected companies and consumers to endure ever increasing costs.

This is all justified by a propaganda barrage aimed at Congress directly and through the media intended to convince people that disaster is just around the corner if the latest round of regulations are not enacted. They always seem to have “studies” in hand that show the numbers of deaths and the dollar costs of medical care that they claim are the direct result of not enacting those regulations.

It’s the same mindset that created the “Kash For Klunkers” fiasco, which destroyed vast numbers of perfectly good vehicles that would have been bought and used by lower income people.

In the government, it is all about empire building. The more funding you can extract from Congress, by hook or by crook, the more people you can hire, the more facilities you can build, and the more pressure you can then apply on Congress to maintain and increase that funding, in an endless vicious loop that benefits only the overpaid government bureaucrats and ultimately chokes industries to death.

The US regulations that VW has run afoul of are considerably stricter that those in Europe.

Why is there no one regulating the regulators?

[TexasGator]

“Then maybe their test for detecting counterfeit bills is not that good and they need to improve it?”

Then you are ok with counterfeiters giving you their bogus bills?

[Norm Lenhart]

It was a fresh build (broken in/rings had tome to seat. Did all the tricks to the carb, tuned it to the best of my ability, dual exhaust (Spintech 2 in inlet/outlet) etcetcetc.

Truck (4x4) pulled over 15mpg highway. Vast improvement because stock that truck new never got over 11 highway downhill with a tailwind the day it rolled off the dealer lot.

So in addition to running very clean on an ‘illegal’ carb, and a ton of no no mods, it also got better mileage.

YAY GOVERNMENT REGS!!!

Oh, and a later build in a heavier Ford F250 with another 400 did similar mileage numbers with head and intake porting, a Boss 351 hydraulic copy and another point of compression...On 37 in. Goodyear Hummer tires and 4.10 gears.

[Jack Hydrazine]

Volkswagen, please pick up the white courtesy telephone. You have a call from Carl Sagan. He wants to have a word with you about the amount due.

[dhs12345]

There will always be people who try to take advantage.

Even the tuner type of person will remove an exhaust system have it tested and then replace the performance exhaust system.

My point is that while everyone is admiring the emperor's new clothes, I am simply saying that maybe the regulations are bogus in the first place. Or maybe they need to be adjusted.