Tomson Thomas
Tomson Thomas
Branch Unspecified
31 Jan 2016

US Justice Department Sues Volkswagen For Violating Emission Norms

The United States Justice Department has filed a lawsuit against the Volkswagen group, in light of the manufacturer installing environmentally unsafe engines in its vehicles and employing devices that allow them to cheat emission tests. The compensation alone could amount to billions, not to mention the cost to recall and repair all affected vehicles.

Volkswagen’s scam was revealed towards the end of last year, when the company admitted to sabotaging tests to show that their vehicles met existing environmental norms, while in actuality, the emissions contained harmful compounds far above their allowed limit. The company also installed cheat software on said vehicles; these would activate when the vehicles underwent emission tests, and ensure that the results would be well within dictated standards.

Volkswagen-logo

This “dual calibration strategy”, as it is referred to, makes sure the vehicles pass any administered emission tests, but cannot prevent the vehicles from emitting unusually high amounts of harmful nitrogen oxide compounds while being driven.

The engines in question were 2.0 litre and 3.0 litre diesel engines sold in the years 2009-2015, and used not only in Volkswagen cars, but also in vehicles under the Audi and Porsche banner.

The company admitted its folly in November 2015 after receiving a violation notice from US authorities, although it had denied the allegations at first. Volkswagen’s apparent confession was not kindly met, and the automotive giant’s reputation has suffered a huge blow. The fact that even premium brands under Volkswagen, which depend on the assurance of quality for their sales and market value, have been pulling the wool over consumers’ eyes made it that much worse.

The financial damages levied against the manufacturer could be around 1,00,000 USD for each vehicle sold, in addition to a possible ban on Volkswagen selling its vehicles in the US until the charges are cleared or decided upon. Volkswagen’s stock value also dropped three points after the declaration of the lawsuit; all in all, this is not a good time for Volkswagen.

Source: Scientific American
tommytrant20

tommytrant20

Branch Unspecified
3 years ago
Volkswagen will settle out over the first famous brand near decades will disappear or revive after the ashes
Tomson Thomas

Tomson Thomas

Branch Unspecified
3 years ago
tommytrant20
Volkswagen will settle out over the first famous brand near decades will disappear or revive after the ashes
Well, there's no doubt Volkswagen will recover from this, but it's reputation has been tarnished quite a bit, and will remain so for some time....
tommytrant20

tommytrant20

Branch Unspecified
3 years ago
Tomson Thomas
Well, there's no doubt Volkswagen will recover from this, but it's reputation has been tarnished quite a bit, and will remain so for some time....
still a long way as perhaps investors will place their hands and not wait for long

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