Starting in 2008, Volkswagen and Audi, and later Porsche, began installing these defeat devices in several generations of US-market Volkswagen and Audi diesel engines that equipped over a dozen models, including flagship Audi luxury sedans and high-performance Porsche SUVs, with sales eventually totaling over 25,000 vehicles in New York State, 15,000 in MA, and 13,000 in Maryland before being pulled from sale previous year. But the settlement did not resolve what penalties might be imposed on Volkswagen, leaving room for more suits. It’s alleged that former CEO Martin Winterkorn and other high-level executives helped orchestrate the cover-up effort. The engineers couldn’t figure out how to make the company’s lean-NOx traps work for reducing nitrogen oxides without producing so much soot that they clogged an emissions-control filter after 50,000 miles (about 80,500km) – far sooner than the 150,000-mile standard mandated in the U.S. Under a management-imposed deadline and “with the knowledge and approval of their managers”, the engineers adapted the Audi software, the attorneys general said.
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The suit alleges that Volkswagen tried to continue covering the violations when regulators first raised questions, and only admitted to the wrongdoing when shown in undisputable facts.
The suits were filed by New York Attorney General Eric Schneiderman in Albany, Massachusetts Attorney General Maura Healey in Boston and Maryland Attorney General Brian Frosh in Baltimore.
Late last month Volkswagen, which also owns the luxury automakers Audi and Porsche, settled civil charges over the use of the cheat devices on 2.0 liter engines with United States and Californian authorities in a $14.7 billion agreement that will see auto owners compensated.
“With today’s action, we want to make clear to all auto manufacturers that violating laws created to protect our environment and our public health is unacceptable and will be punished with significant penalties”, said Healey. “Neither Volkswagen, nor any other vehicle manufacturer, should ever again conclude that it can engage in this behavior as part of the cost of doing business”. Other states are seeking similar punishments, with differences that reflect local laws. That would amount to $73 million in the state alone.
The suit did not charge Muller with being aware of the cheating.
“These automobile manufacturers deliberately deceived the public into believing their cars met emissions standards when in fact they were excessively polluting New York’s air”, said New York DEC Commissioner Basil Seggos.
Volkswagen said on Wednesday its first-half operating profit beat expectations, helped by cost cutting at its core VW brand and rising European vehicle sales, but announced another 2.2 billion euro ($2.4 billion) provision related to its emissions scandal. It added, “It is regrettable that some states have chose to sue for environmental claims now, notwithstanding their prior support of this ongoing federal-state collaborative process”.
The New York Attorney General’s office says it found “no evidence that a single Volkswagen, Audi or Porsche employee came forward to blow the whistle” at any point.
About 580,000 Volkswagen vehicles sold in the U.S, including more than 25,000 vehicles in NY, 15,000 in MA and nearly 13,000 in Maryland, the attorneys generals said.
The company still needs to address the same issue on 3.0 liter engines with cheat devices in Volkswagen, Audi, and Porsche models cars. The company says it hopes for a comprehensive national resolution of all remaining issues.
In the surprise announcement – which comes ahead of the interim results scheduled for July 28 – VW also updated on its full-year forecasts.
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Operating profit before special items rose to 7.5 billion euros ($8.25 billion) in the first six months of 2016 from 6.99 billion euros a year earlier, the German carmaker said in a statement.
