US files civil suit against Volkswagen under Clean Air Act

The US has filed a civil lawsuit against German carmaker Volkswagen AG for what it alleges are violations of the Clean Air Act though its attempts to cheat emissions tests on 600,000 cars.

If the Justice Department wins the suit it could result in penalties for Volkswagen in the billions of dollars, a senior department official said.

"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.

The Justice Department, which still has the power to pursue criminal charges against Volkswagen, filed the lawsuit in Michigan on behalf of the Environmental Protection Agency, before it will later be transferred to Northern California, where there are already class-action lawsuits pending against Volkswagen.

Cynthia Giles, assistant administrator for enforcement and compliance assurance at EPA, said: "With today’s filing, we take an important step to protect public health by seeking to hold Volkswagen accountable for any unlawful air pollution, setting us on a path to resolution.

"So far, recall discussions with the company have not produced an acceptable way forward. These discussions will continue in parallel with the federal court action."

In December, the German company admitted the emissions scandal was down to a “chain of errors" that began as far back as 2005, with the starting point being a strategic decision to launch a large-scale promotion of diesel vehicles in the US.

The problem is not limited to the US, with litigation finance groups preparing potential multi-billion-euro class actions in Germany, revelations that nearly 1.2m vehicles in the UK have had emissions-cheating software installed, and close to 80,000 vehicles in Australia.