Embattled Germany auto manufacturer Volkswagen, already caught in a sea of civil litigation and corporate restructuring, was finally served notice of civil litigation Monday. Filed in Detroit, Michigan, the United States alleges VW is responsible for installing mechanisms on 600,000 vehicles which were designed to pass emissions tests that would otherwise have failed.
Once doted for its survival during the automotive bailout phase of America’s post-911 recession recovery, Volkswagen has set in motion the largest corporate flimflam in automobile history. Volkswagen, who has admitted to rigging 2L and 3L engines, has witnessed its CEO’s resignation, the suspension of nine key employees and is now fielding a litany of civil suits.
The suit was filed on behalf of the EPA, CARB (California Air Resources Board) and stems from an aggravating, lengthy investigation into the vehicular cheats Volkswagen had admittedly been planning since its decision to infiltrate the United States market with diesel vehicles 10 years ago. Another component of the suit alleges the German-based manufacturer shipped thousands of cars in violation of the Clean Air Act.
United States standards of emission are notoriously tough on imported vehicles. Lacking sufficient technology to measure up to these elevated standards, the epic cheat was put into motion. A hint of this cheat actually surfaced between 2006 and 2007 when VW sought a partnership with Daimler and BMW to mitigate growing diesel emissions problems. Due to managerial snafus, partnership hopes between the trio diminished — along with any thought of fighting rising diesel emission problems.
If Volkswagen is found in contempt of the Clean Air Act and violating emissions standards, the fines are astronomical. For the 499,000 vehicles equipped with 2L diesel engines, the fine could be as high as $32,500 per vehicle equipped with the cheat ($16.2B); the 3L vehicles installed with the software could be fined up to $37,000 for each of the 85,000 affected vehicles ($3.1B).
Wolfgang Hatz, a key piece of the prosecution’s case, was in charge of transmission and engine development for VW and their family of brands (Audi, Lamborghini, Porsche). Shortly after his promotion to that position, he was filmed complaining about the egregious expectations set by CARB. Hatz is one of the nine suspended employees.
No indication of when the next court hearing is was immediately available.
