EPA Charge and VW admissions - September, 2015
The EPA, or Environmental Protection Agency, stated that Volkswagen installed a “defeat device” on 482,000 of its four-cylinder diesel automobiles in the United States in order to bypass federal emissions regulations, possibly exposing the public to harmful air pollutants. The defeat devices were designed to make it appear as if these cars passed the standards set forth in the Clean Air Act.
However, the automobiles emit 40 times more nitrogen oxide than allowed by the Clean Air Act standard. At this level, the potential exists for the exacerbation of asthma and other serious respiratory conditions.
Volkswagen admitted the validity of the EPA's claims, stating that the defeat devices affected 11 million automobiles around the world. According to Volkswagen, the cost to remedy this situation is over $7 billion. The company instructed auto dealers to refrain from selling the affected four-cylinder diesel cars until given a viable solution.
Sub-Par Performance at a Premium Price
Those who purchased clean diesel Volkswagens and Audis, were charged 1,000 to 7000 more than unleaded gasoline engine Volkswagen and Audi buyers, as a result of the fraudulent misrepresentation that the “clean” diesel buyers were making an environmentally decision.
VW Emissions Investigation
According to the EPA, Volkswagen utilized a “sophisticated” algorithm to trigger the cars' full emissions controls when detecting emissions performance tests. The aforementioned information was discovered by California regulators and the EPA when the International Council on Clean Transportation and West Virginia University questioned the emissions levels of the affected VW automobiles.
While on a conference call with reporters, Cynthia Giles of the EPA stated that the agency will hold Volkswagen accountable. Giles further stated that VW hid facts from consumers, and the EPA noted that the EPA “expected better” from Volkswagen. A statement from the EPA says that the automobile manufacturer may be held liable for “injunctive relief and civil penalties.”
Potential Criminal Charges, Regulations and Fines for Volkswagen
For each Clean Air Act violation, Volkswagen can be fined up to $37,500 per recalled automobile. When considering that there are approximately 482,000 affected cars, the total fine may be as high as $18 billion. Individual lawsuits are separate from any federal lawsuit.
In addition, an unnamed source who contacted Bloomberg News and the Associated Press said that the United States Justice Department is looking into criminally charging Volkswagen. European regulatory bodies are even planning to intensely scrutinize the auto maker, potentially causing a significantly negative impact in VW's number one market - China.
Volkswagen plans to set aside approximately $7.3 billion in the company's third quarter, so it can address the situation, with the amount possibly changing in the future.
Consumer Reports Rating
Due to the VW emissions “outrageous” scandal, Consumer Reports has withdrawn its ratings on diesel Passats and Jettas, and the Consumers Union's senior director of federal policy, Ellen Bloom, stated that Volkswagen simultaneously harmed the environment and duped the consumer.
Impacted Performance and Resale Values
The overall opinion is that Volkswagen cannot make the affected automobiles EPA compliant without significantly decreasing the cars' efficiency and horsepower. Even if Volkswagen can comply with the EPA's emissions standards, owners of these cars will suffer real damage and harm since their cars will not perform as advertised when purchased.
Lower resale value is another concern among Clean Diesel Audi and Volkswagen owners. When VW does sell its diesel models again, the incentives and lowered purchase prices of lot inventories may decrease the demand for used models and resale values.
Effected Models
The exact models with the faulty software are:
- 2009 to 2014 Jetta TDI Sedans and Jetta TDI Sportswagens.
- 2010 to 2015 Audi A3 TDIs and Volkswagen Golf TDIs.
- 2012 to 2015 Beetle TDIs, Beetle Convertible TDIs and Passat TDIs.
- 2015 Golf TDI Sportswagens.
Driving Recalled VW Diesel Cars - Are There Any Restrictions?
The EPA says that owners of the above listed cars can continue to drive them in their current state until further notice. Although Volkswagen has not yet found a solution to the problem, automotive experts believe alterations made to the affected models will negatively impact the cars' performance and cause the cars to use more fuel.
Qualifying for a Volkswagen Emissions Lawsuit
Since Volkswagen's deception may decrease the impacted cars' value, owners of the affected vehicles could be eligible to receive compensation for VW's violations of federal and state trade practices, repair costs, reduced auto value and other losses paid out in any Volkswagen Emissions class action lawsuit. If you are an owner of any of the affected vehicle models, our firm can answer the questions you have and discuss all options available to you. The statute of limitations in your state dictates the amount of time you have to file an injury claim. After the statute of limitations expires, you will not be able to file a claim against Volkswagen, so contact our firm today.
