US regulators say they have a lot more questions for Volkswagen, triggered by the company’s recent disclosure of additional suspect engineering of 2016 diesel models that potentially would help exhaust systems run cleaner during government tests.
That’s more bad news for VW dealers looking for new cars to replace the ones they can no longer sell because of the worldwide cheating scandal already engulfing the world’s largest automaker. Depending on what the Environmental Protection Agency eventually finds, it raises the possibility of even more severe punishment.
Volkswagen confirmed to the Associated Press on Tuesday that the “auxiliary emissions control device” at issue operates differently from the “defeat” software included in the company’s 2009 to 2015 models and revealed last month.
The new software was first revealed to Environmental Protection Agency and California regulators on 29 September, prompting the company last week to withdraw applications for approval to sell the 2016 model cars in the US.
“We have a long list of questions for VW about this,” said Janet McCabe, acting assistant EPA administrator for air quality. “We’re getting some answers from them, but we do not have all the answers yet.”
The delay means that thousands of 2016 Beetles, Golfs and Jettas will remain quarantined in US ports until a fix can be developed, approved and implemented. Diesel versions of the Passat sedan manufactured at the company’s plant in Chattanooga, Tennessee, also are on hold.
Volkswagen already faces a criminal investigation and billions of dollars in fines for violating the Clean Air Act for its earlier emissions cheat, as well as a raft of state investigations and class-action lawsuits filed on behalf of customers.
If EPA rules the new software is a second defeat device specifically aimed at gaming government emissions tests, it would call into question repeated assertions by top VW executives that responsibility for the cheating scheme lay with a handful of rogue software developers who wrote the illegal code installed in prior generations of its four-cylinder diesel engines.
That a separate device was included in the redesigned 2016 cars could suggest a multi-year effort by the company to influence US emissions tests that continued even after regulators began pressing the company last year about irregularities with the emissions produced by the older cars.
The software at issue makes a pollution-control catalyst heat up faster, improving performance of the device that separates smog-causing nitrogen oxide into nitrogen and oxygen gases.
“This has the function of a warmup strategy which is subject to approval by the agencies,” said Jeannine Ginivan, a VW spokeswoman. “The agencies are currently evaluating this and Volkswagen is submitting additional information.”
Automakers routinely place auxiliary emissions control devices on passenger vehicles, though they are required by law to disclose them as part of the process to receive the emissions certifications that are required to sell the cars.
EPA’s McCabe wouldn not say if VW’s failure to disclose the software in its 2016 applications was illegal. “I don’t want to speak to any potential subjects of an enforcement activity,” she said.
If VW was cheating a second time, that would probably mean higher fines against the company, Karl Brauer, a senior analyst at Kelley Blue Book.
Regulators are “going to be even more angry than they already are”, Brauer said. “The punitive actions from the EPA are only going to get more aggressive.”
The German automaker already faces up to $18bn in potential fines over the nearly half-million vehicles sold with the initial emissions-rigging software.