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How the Volkswagen cheating probe developed

Fallout from Volkswagen's revelation that it engaged in cheating on emissions testing continued Monday, with the company's stock falling more than 15 percent and a Congressional subcommittee announcing an investigation into the German auto giant's conduct. Both the Environmental Protection Agency and California Air Resources Board served Volkswagen with a Notice of Violation on Friday, saying the company intentionally circumvented emissions standards by using "defeat devices." Here's a look back at the agencies' emissions enforcement history and how the charges involving Volkswagen developed. August 1998 – Honda spends $267 million to settle charges it violated the Clean Air Act by disabling "misfire monitoring devices" installed on more than 1.6 million vehicles. Ford spends $7.8 million to settle a charge it violated the Clean Air Act by installing defeat devices on 60,000 Ford Econoline vans. May 2014 – Working with the International Council on Clean Transportation, researchers at West Virginia University find significantly higher in-use emissions from a 2012 Jetta and 2013 Passat and alert the EPA to their findings. November 3, 2014 – Korean automakers Hyundai and Kia agree to pay a $100 million fine for overstating the fuel economy on several of their models by as much as six miles per gallon. In announcing the fine, government officials sought to make an example of the two companies to deter further cheating. VW officials admit the vehicles were designed with a defeat device to "bypass, defeat and render inoperative elements of the vehicle emissions control systems." "This type of conduct quite simply will not be tolerated," said then-Attorney General Eric Holder. "And the Justice Department will never rest or waver in our determination to take action against any company that engages in such activities – whenever and wherever they are uncovered." December 2, 2014 – Following discussions that stemmed from West Virginia University's findings, Volkswagen agrees to initiate a recall of 500,000 cars. The company says a software update will fix the nitrous oxide trap technology and selective catalytic reduction technology causing the cars to miss emissions thresholds. May 6, 2015 – CARB wanted to see whether the software fix implemented by Volkswagen worked. Using portable emissions measurement systems, the regulatory officials found NOx emissions were still significantly higher than expected.

Weekly Recap: Volkswagen moves forward under Muller

Most stunning was the speed of it all. On the morning of September 18, Volkswagen AG stood atop the automotive world. It was profitable and sold more cars than Toyota and General Motors, its two main rivals for global supremacy. By nightfall, the company would be embroiled in scandal. Revelations the German auto giant cheated on diesel emissions testing in the United States reverberated from Washington to Wolfsburg, Germany. What started out as a problem with 482,000 VWs and Audis in the US exploded into an international scandal. Millions of vehicles have the rigged software, meaning VW broke environmental rules as its cars spewed pollutants all over the world. The fallout began immediately. Volkswagen CEO Martin Winterkorn – one of the most respected and capable executives in the business – apologized on Sunday and Tuesday. On Wednesday he resigned. As the week progressed, the company's stock took a beating and credit agencies threatened to drop their ratings. VW dealers and owners said they felt betrayed. The automaker hired a law firm that defended BP after the Deepwater Horizon oil spill. The EPA is already extending its testing procedures to look for "defeat devices" like the ones used by Volkswagen. On Friday the company announced a major restructuring. Matthias Muller, Porsche's chief for the last five years, took over as CEO of Volkswagen and is charged with picking up the pieces of a shattered company facing regulatory action and lawsuits. With GM, Toyota, and Takata scandals still fresh, Volkswagen will likely experience unprecedented levels of scrutiny. Additionally, VW's markets in the United States, Canada, and Mexico will be combined into a North American region under the leadership of former Skoda boss Winfried Vahland, though US chief executive Michael Horn will stay on. The company is also realigning its brands by specialty and streamlining its board. Firings, government action, restructurings, and international outrage – things that usually build up over months or years – all occurred in about a week. With dizzying speed, Volkswagen's future has changed dramatically. It all happened, it's still happening, so fast. OTHER NEWS & NOTES 2016 Buick Cascada to start at $33,990 Buick hasn't made a convertible in 25 years. That's a whole person who can drink plus a kindergartner. So it's been awhile. Enter the 2016 Buick Cascada. It has top-shelf Opel engineering, slinky design, and it's reasonably priced.

Volkswagen, Bosch reach diesel settlement worth $1.6 billion

Volkswagen Group of America and automotive parts maker Bosch reached a settlement in which the two companies will pay a combined $1.6 billion because of their roles in the automaker's diesel-emissions scandal. VW, Europe's largest automaker, will pay about $1.2 billion to either repair or buy back vehicles. Bosch said separately that it will pay more than $300 million to owners of diesel-powered Volkswagens, Audis, and Porsches. The settlement stems from emissions issues related to about 78,000 VW-made cars and SUVs with 3.0-liter V6 diesel engines that were sold in North America. VW will recall and repair about 58,000 vehicles made for the 2013-through-2016 model years. The company will also buy back, offer a trade-in credit, or terminate the leases for about 20,000 cars for the model years 2009 through 2012. The older impacted models are the Volkswagen Touareg and Audi Q7, while the newer ones are the Touareg and Q7 as well as Audi's A6, A7, A8, A8L, and Q5 models, and finally the Porsche Cayenne Diesel. Previous reports estimated the payout at closer to $1 billion. The US settlement follows one reached last year between VW and US regulators in regards to VW's 2.0-liter diesel engines. That settlement was estimated to cost VW about $15 billion and impacted owners of about 500,000 vehicles. VW has had a stop-sale on its diesel vehicles in the US since late 2015 after it was discovered that VW installed software in its diesels that allowed those vehicles to cheat emissions-testing systems. VW on Wednesday also reiterated that it would contribute $225 million towards environmental-remediation efforts in the US. Volkswagen of America CEO Hinrich J. Woebcken, in Wednesday's statement, said that "we will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward." Related Video: News Source: Volkswagen via Automotive News-sub.req.Image Credit: Shannon Stapleton / Reuters Government/Legal Green Audi Porsche Volkswagen AutoblogGreen Exclusive Emissions Diesel Vehicles vw diesel scandal scandal settlement