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ACEEE strips away VW's green car scores

The American Council for an Energy-Efficient Economy (ACEEE) is confirming that the Volkswagen diesel-emissions scandal has put a black mark on its green ratings. As a result, the group is pulling VW diesel vehicles off of its "Green Scores" list because it was recently revealed that VW diesels might be emitting as much as 40 times the nitrogen oxide (NOx) emissions during normal driving as the official test results show. The ACEEE added that other German makers of diesel vehicles' "Green Scores" are safe, for now. Diesels from VW and the company's Audi division didn't exacatly top the ACEEE's list of greenest vehicles for 2015. That honor went to electric vehicles like the Smart ForTwo ED, Chevrolet Spark EV and Fiat 500E. The Toyota Prius C hybrid snuck in at number 4, while the Nissan Leaf battery-electric took the fifth spot. That said, the VW diesels did perform pretty well, according to the group. "These scores are no longer reasonable estimations of the environmental impact of the Volkswagen diesels. Volkswagen's diesel cars have performed well on ACEEE's annual rankings since 2009, hovering just below our list of the top twelve "Greenest" vehicles with Green Scores in the high 40s," wrote Shruti Vaidyanathan, senior transportation researcher at the ACEEE. "However, a 40-fold increase in on-road NOx would mean that these vehicles did not deserve those high Green Scores." For those curious, the Ram 2500 pickup topped the ACEEE's "Meanest" vehicle of 2015, followed by the Chevrolet G2500 Express/GMC Savana. No diesels showed up on that list of environmentally-damaging vehicles. You can read the ACEEE's statement on VW below. Why we are suspending Volkswagen diesel Green Scores on greenercars.org by Shruti Vaidyanathan, Senior Transportation Researcher On September 18th, the Environmental Protection Agency (EPA) slapped the Volkswagen Group with a notice of violation (link is external) of the Clean Air Act for circumventing EPA emission standards for nitrogen oxides (NOx). Volkswagen has now acknowledged using so-called "defeat devices" on its diesel cars that turn on full emissions control technologies while in testing mode but allow the vehicles to emit nitrogen oxide levels up to 40 times the certified level during normal operation.

VW's credit ratings could take a beating

In addition to a significant drop in its share price already, Volkswagen's diesel emissions scandal is continuing to have major financial repercussions on the German automaker. According to The Detroit News, credit rating agencies like Standard & Poor's and Moody's changed their forecasts on the company to negative, and Fitch has considered doing so, as well. Volkswagen appears to have the money to cover the costs of this ordeal, but the agencies question the effect that this has in the long term. "Moody's concern, however, is that Volkswagen's alleged breach of US environment rules and, especially, the process by which that breach occurred, will have an adverse effect on its reputation and credibility within the global passenger car markets," the company wrote in a note to investors, according to The Detroit News. VW has initially set aside $7.25 billion to fix things, but the potential shakeup of top executives has caused some investor uncertainty, too. The actual costs for VW to deal with this scandal are still unknown. In the US, the Department of Justice has begun a criminal investigation, and with other automakers the government has settled for $900 million against General Motors and $1.2 billion against Toyota. Attorneys general in 29 states have started looking deeper, according to The Detroit News, and regulators in Europe, South Korea, and Canada have commenced their own probes, as well. Related Video:

VW diesel incentives could be fuel for prosecutors

In the 2000s, Volkswagen was among the companies that lobbied the government to get buyers of diesel vehicles a tax credit. The automaker even brought some of these models to Washington to show them to politicians. The incentive eventually passed, and about 39,500 customers of the 2009 Jetta TDI and Jetta SportWagen TDI got a $1,300 benefit – for a total cost of around $51 million. Now, according to Reuters, that politicking might come back to bite the automaker when prosecutors finally get cases to trial. The US Department of Justice, the Environmental Protection Agency, and attorneys general in at least 29 states are already investigating VW, and politicians are pushing for criminal and civil actions against the company. According to Reuters, there could be several legal routes available, too. One option is to bring tax fraud charges, and that would require proving the automaker knew it was making untrue claims about the diesel models. There's also the option of bringing a case under the False Claims Act, which prohibits fraud against the government. According to Reuters, a maximum penalty under the law would be three times the tax credit and another $5,000 for each vehicle that received it. The company is also facing a class-action lawsuit from disgruntled owners. To aid its defense against all of these claims, VW has hired the same firm that worked with BP during the Deepwater Horizon oil spill. Outside of the US, prosecutors in Germany have just started to build a case against former CEO Martin Winterkorn for alleged fraud. In addition to these potential legal penalties, VW could be fined around $18 billion by the EPA for the emissions infractions. The agency's investigation is getting the added backing of its Canadian counterpart. Although, the actual settlement is expected to be far less.