VW scandal:
Regulators warn carmakers that they will start checking for cheating.
In a sign that the air pollution scandal engulfing Volkswagen could spread, California regulators on Friday warned other automakers that they would soon start checking more cars for “defeat devices” that can cheat government emissions tests.
Discovery of such devices in Volkswagen’s “clean diesel” cars, announced last week, has shaken the world’s largest automaker, slashed its market value, raised the specter of criminal investigations and fines and forced its CEO to resign.
California air regulators had a hand in uncovering Volkswagen’s fraud. And on Friday, the California Air Resources Board sent other automakers a tersely worded letter saying it will now subject other diesel cars to the same tests that found Volkswagen’s defeat devices. It also reminded car companies that such devices are illegal.
The board said it “will take actions that protect public health, air quality and consumers by aggressively continuing its ongoing investigation into Volkswagen’s defeat device, with additional testing and investigation of the potential presence of similar devices in vehicles across manufacturers.”
Last week, the board and the U.S. Environmental Protection Agency reported that Volkswagen had installed defeat device software in diesel cars from 2009 through 2015. The soft-
ware turns on all of the vehicle’s air-pollution controls only when it senses that an emissions test is under way.
During normal driving, those controls switch off, giving the car better gas mileage and performance. But the car’s emissions of smog-causing nitrogen oxides jump to 40 times the national standard as a result.
The devices were installed in an estimated 482,000 cars sold in the United States, 11 million worldwide. While the EPA has ordered the cars recalled, the timing and details of that recall effort have not yet been announced.
For years, Volkswagen touted “clean diesel” as the company’s answer to high fuel prices, while competitors pushed hybrids and electric cars. Revelations that Volkswagen’s diesel vehicles produce far more pollution than believed have left the company’s reputation in tatters and forced its CEO, Martin Winterkorn, to resign on Wednesday. Winterkorn denied that he had any personal involvement in the deception.
The company moved quickly to replace him. On Friday, Volkswagen’s board named Matthias Müller, head of the company’s Porsche unit, as its chief executive.
“My most urgent task is to win back trust for the Volkswagen Group — by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation,” Müller said. “Under my leadership, Volkswagen will do everything it can to develop and implement the most stringent compliance and governance standards in our industry.”
The scandal, however, has already erased more than $22 billion from Volkswagen’s market value. It faces criminal investigations in several countries, as well as huge fines.
Discovery of Volkswagen’s defeat device software also prompted a rash of class-action lawsuits from customers. By Wednesday, Automotive News counted 25 suits, including one filed within hours of the EPA announcement.