US EPA issues Volkswagen with a warning

Volkswagen is at the centre of a new row that has ramifications for American consumers – and possibly for owners closer to home.

Following independent testing by the West Virginia University, Volkswagen in the US has been reprimanded by America's EPA and the California Air Resources Board (CARB). The testing revealed that a 2012 Jetta and a 2013 Passat – both diesels – operated differently when tested for air quality and fuel consumption than when driven in normal conditions on the road.

In a report by American industry journal, Automotive News, CARB is understood to be investigating Volkswagen to determine whether the car company deliberately set out to skirt around emissions control legislation for its diesel-engined cars.

The EPA, according to the report, has let Volkswagen off the hook for the moment, with little more than a reprimand. Under current legislation, the EPA would have been entitled to fine Volkswagen as high as US $37,500 per car sold. Something like 482,000 vehicles are believed to be affected, including the latest model Passat, which went on sale in the US last year, and the Jetta, Beetle, Golf and Audi A3 built between 2009 and 2015. Should the EPA elect to impose a penalty on VW down the track, the cost to the car company might be as high as US $18 billion in total.

The EPA is calling the engine management system software that reduced nitrogen oxide emissions during testing a 'defeat device'. In the report, it's stated that the software detects when the vehicle is subjected to an EPA test, at which time it makes the transition to optimal emissions control parameters. After the test, the software reverts to normal operation, allowing nitrogen oxides at 40 times the permissible test level to be discharged.

"These violations are very serious, not only because illegal defeat devices results in excess emissions many times the allowable standard, but also because VW was concealing the facts from EPA, the state of California and consumers," the report quoted EPA spokesperson Cynthia Giles as saying.

"We expected better from VW," Giles, the assistant administrator for the EPA's Office of Enforcement and Compliance Assurance reportedly said in a teleconference in which CARB took part.

"The dogged detective work in the lab provided the data and resulted in an admission that VW did indeed have a defeat device in its software for diesel cars," said Richard Corey, executive officer of the California Air Resources Board, during the same conference call.

The investigation – a joint effort by the EPA and CARB – is on-going, and the EPA reserves the right to impose a financial penalty on Volkswagen, once the matter is concluded. Beyond the financial cost, Volkswagen potentially faces criminal charges, with the EPA having also informed the US Justice Department.

In addition to the brand damage done as a consequence of deceiving the buying public and the US Federal Government, Volkswagen faces further hurdles if its range of vehicles is found to be incapable of meeting Corporate Average Fuel Economy (CAFE) standards. Diesel has been the cornerstone of Volkswagen's strategy to keep CAFE numbers down.

Influential American consumer advocacy publication, Consumer Reports, has suspended its 'recommended' ratings for the Jetta and Passat diesels.

"These recommendations will be suspended until Consumer Reports can re-test these vehicles with a recall repair performed," the magazine stated.

"Once the emissions systems are functioning properly, we will assess whether the repair has adversely affected performance or fuel economy."

Owners of affected vehicles have already taken legal action against Volkswagen, filing a class-action lawsuit for 'fraudulent concealment, false advertising and violating consumer rights laws'.

Ford, Hyundai and Kia have already been caught out making fuel economy claims for each company's respective cars... claims that didn't stand up to scrutiny. The penalty imposed on Ford ranged between $200 and $1050 for each of 200,000 cars sold.

Volkswagen Australia is aware of the situation in America and is "chasing further details", says Kurt McGuinness, Public Relations Manager for Volkswagen Australia.