U.S.
Karl-Josef Hildenbrand / picture-alliance / dpa / AP
The U.S. Justice Department is conducting a criminal probe after Volkswagen admitted it had rigged emissions tests of diesel-powered vehicles in the United States, Bloomberg reported Monday, citing two U.S. officials familiar with the inquiry.
The U.S. Environmental Protection Agency said Friday the world's biggest carmaker by sales used software for diesel VW and Audi branded cars that deceived regulators measuring toxic emissions and could face penalties of up to $18 billion. Volkswagen said on Sunday it had launched an internal investigation.
German officials, alarmed at the potential damage the scandal could inflict on its car industry, urged Volkswagen to fully clear up the matter and said it would investigate whether emissions data had also been falsified in Europe.
The U.S. Environmental Protection Agency (EPA) said on Friday the world's biggest carmaker by sales used software for diesel VW and Audi branded cars that deceived regulators measuring toxic emissions and could face penalties of up to $18 billion.
The scandal reverberated Monday with the White House saying it was "quite concerned" about the reports of VW's conduct. And the U.S. Department of Justice started a criminal probe of the effort to game the emissions tests, Bloomberg News reported.
The EPA and California officials said Monday they would test diesel vehicles from other manufacturers for similar violations. In addition to Volkswagen, automakers including General Motors and Fiat Chrysler Automobiles sell diesel cars and SUVs in the United States.
"You will understand that we are worried that the justifiably excellent reputation of the German car industry and in particular that of Volkswagen suffers," German Economy Minister Sigmar Gabriel said.
Volkswagen Chief Executive Martin Winterkorn has promised to support testing by German authorities of the company's diesel cars, Germany's Transport Ministry said on Monday.
Winterkorn said on Sunday he was "deeply sorry" for the breach of U.S. rules and ordered an investigation. People including a VW supervisory board member said Winterkorn may have to resign.
"This disaster is beyond all expectations," said Ferdinand Dudenhoeffer, head of the Center of Automotive Research at the University of Duisburg-Essen.
On Tuesday, South Korea's environmental ministry said it would investigate 3,000 to 4,000 Volkswagen's Jetta and Golf models and the Audi A3 produced between 2009 and 2015.
"If South Korean authorities find problems in the VW diesel cars, the probe could be expanded to all German diesel cars," said Park Pan-kyu, a deputy director at the ministry.
Evidence of increased toxic emissions at VW first emerged in 2014, prompting the California Air Resources Board (CARB) to start investigating VW, a letter by CARB to VW dated Sept. 18 showed.
Volkswagen initially denied it was trying to game the inspections, attributing the higher emissions readings to "various technical issues and unexpected in-use conditions,” the EPA said in its formal notice of violations on Friday.
The stonewalling continued until the agency threatened to withhold certification for the carmaker’s 2016 models, the EPA said.
“Only then did VW admit it had designed and installed a defeat device” that purposely lowered emissions while it was being inspected, the agency said. During regular driving, emissions would return to a much higher level, boosting the car's performance.
Any decision on emissions control mechanisms would have been taken at the group's Wolfsburg headquarters and not by regional divisions, a source close to Volkswagen said.
Germany's Robert Bosch supplies diesel emissions control devices to VW, an industry source said. Asked whether Bosch had supplied the electronic module central to the EPA test findings, a company spokesman said: "We supply components for exhaust after-treatment to several manufacturers. The integration is the responsibility of the manufacturer."
The way carmakers test vehicles has been coming under growing scrutiny from regulators worldwide amid complaints from environmental groups that they use loopholes in the rules to exaggerate fuel-saving and emissions results.
In 2013, an Indian government-named panel accused GM of flouting testing regulations by fitting engines with low emissions in vehicles sent for inspection. And in 2014, Hyundai and affiliate Kia Motors paid $350 million in penalties to the U.S. for overstating fuel economy ratings.
The European Commission said it was in contact with VW and U.S. regulators, but that it was too early to say whether any specific immediate surveillance measures were needed in Europe or whether VW vehicles in Europe were also affected.
VW shares fell 18.6 percent to close at 132.20 euros, wiping some 14 billion euros ($15.6 billion) off its market cap.
Reuters
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