Defeat Devices Could Cost Volkswagen $18 billion

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Can you cheat compliance? Volkswagen AG, Audi AG, and Volkswagen Group of America, Inc. (Volkswagen) recently discovered that the answer is “no.”  On September 18, 2015, the U.S. Environmental Protection Agency (EPA) issued a Notice of Violation (NOV) of the federal Clean Air Act (CAA) to Volkswagen after discovering diesel cars from model years 2009 to 2015 contain software that circumvents the EPA's emissions standards for certain air pollutants, such as nitrogen oxides. In collaborative testing with the California Air Resources Board (CARB), the EPA discovered that the cars emit up to 40 times more pollution than the standards allow.

In this article, we explore the latest scandal to hit Volkswagen and what this means for other automakers.

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