Volkswagen will soon face a legal battle in the USA, and the lawsuit has been filed by none other than the United States Justice Department.
Why are they being sued, you ask? Well, the US Department of Justice is accusing Volkswagen of violating the Clean Air Act, the Wall Street Journal reports. They are seeking billions of dollars in penalties over alleged cheating in emissions test for around 500,000 cars equipped with the 2.0-liter TDI engine of the EA189 series, fitted with what VW engineers called a “defeat device.” The plaintiff didn’t forget to mention the V6 TDI engined vehicles featuring their own custom software made to trick emission tests.
The civil lawsuit was filed in the Eastern District of Michigan and transferred to Northern California. Volkswagen is charged with four counts of breaching the U.S. Clean Air Act, including failing to report the violations to the authorities and, naturally, willfully modifying the emission control systems on the cars it sold.
Since the American branch of the German company sold almost 600,000 vehicles in the States with the plagued “Defeat Device,” the penalty could rise to a hefty sum. The maximum fine is of $32,500 for each car that violated the Clean Air Act before January 12, 2009, and can rise up to $37,500 for every “dirty” car sold after that date. Back in September 2015, the EPA estimated that Volkswagen could pay a fine of over $18 billion, but things could take a turn for the worse for the Wolfsburg brand.
According to ING analysts, the lawsuit might not get to court and could be settled behind closed doors. After all, Volkswagen will fix all affected vehicles and will reimburse their owners for the damage caused and will probably pay a tax difference on the emission levels recorded above the stated numbers in the specific timeframe in which the Dieselgate-affected vehicles didn’t comply with US regulations.
But even if Volkswagen settles this lawsuit, other legal actions may follow. For example, the subject of this article refers to a civil suit, but there are also criminal charges involved for some people working for the American branch of the German company. The company itself could be investigated by federal prosecutors on potential criminal charges as well. All that’s left for us is to hope things will eventually be sorted out.
The civil lawsuit was filed in the Eastern District of Michigan and transferred to Northern California. Volkswagen is charged with four counts of breaching the U.S. Clean Air Act, including failing to report the violations to the authorities and, naturally, willfully modifying the emission control systems on the cars it sold.
Since the American branch of the German company sold almost 600,000 vehicles in the States with the plagued “Defeat Device,” the penalty could rise to a hefty sum. The maximum fine is of $32,500 for each car that violated the Clean Air Act before January 12, 2009, and can rise up to $37,500 for every “dirty” car sold after that date. Back in September 2015, the EPA estimated that Volkswagen could pay a fine of over $18 billion, but things could take a turn for the worse for the Wolfsburg brand.
According to ING analysts, the lawsuit might not get to court and could be settled behind closed doors. After all, Volkswagen will fix all affected vehicles and will reimburse their owners for the damage caused and will probably pay a tax difference on the emission levels recorded above the stated numbers in the specific timeframe in which the Dieselgate-affected vehicles didn’t comply with US regulations.
But even if Volkswagen settles this lawsuit, other legal actions may follow. For example, the subject of this article refers to a civil suit, but there are also criminal charges involved for some people working for the American branch of the German company. The company itself could be investigated by federal prosecutors on potential criminal charges as well. All that’s left for us is to hope things will eventually be sorted out.