EPA charges Volkswagen for emissions-cheating devices on 3-litre cars

The US Environmental Protection Agency has found Volkswagen used emissions-cheating 'defeat devices' on several larger-engine models, which could add $375m to existing fines.

In its second notice of violation (NOV) issued to the German carmaker, the EPA said an additional 10,000 VW cars sold in the US, including those under the Porsche and Audi brands, violated US emissions standards, plus an unknown number of 2016-model cars.

The NOV alleged that VW used these devices on several diesel vehicles equipped with 3.0 litre engines that allowed them to pass tests with increased emissions of nitrogen oxide (NOx) up to nine times EPA’s standard.

Seven further models have been added to the list of vehicles violating emissions standards: the 2015 VW Touareg, 2015 Porsche Cayenne, 2016 Audi A6 Quattro, Audi A7 Quattro, Audi A8, Audi A8L and Audi Q5.

These alleged violations are in addition to the NOV issued on 18 September and the ongoing investigation by EPA alleging a defeat device on certain 2.0 liter engines for 2009-2015 vehicles.

“VW has once again failed its obligation to comply with the law that protects clean air for all Americans,” said the EPA's Cynthia Giles.

“All companies should be playing by the same rules. EPA, with our state, and federal partners, will continue to investigate these serious matters, to secure the benefits of the Clean Air Act, ensure a level playing field for responsible businesses, and to ensure consumers get the environmental performance they expect.”

Third-quarter results last week showed VW reversed into a €3.48bn operating loss and a €2.52bn pre-tax loss, as the emissions scandal took its toll. The company took a €6.7bn charge relating to the costs of the emissions issues, slightly more than the €6.5bn it had set aside.

Chairman and chief executive Matthias Mueller said: “We will do everything in our power to win back the trust we have lost.”

VW said that because of charges related to the irregularities in the software used for certain diesel engines, it expects 2015 operating profit for both the group and the passenger cars business area to be down significantly year-on-year.

The carmaker could also be slapped with a multi-billion-euro lawsuit by shareholders, with litigation finance group Bentham having hired leading legal firm Quinn Emanuel to prepare a class action in Germany for Volkswagen investors for what it describes as the car-manufacturer's "fundamental dishonesty".