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U.S. agencies could hit Volkswagen with $18 billion fines

05 Jan 2016, 12:05 pm
Financial Nigeria
U.S. agencies could hit Volkswagen with $18 billion fines

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There are about 500,000 diesel cars on U.S. roads from Volkswagen and its luxury brand Audi that violate the environmental rules, according to the suit.

Volkswagen office

U.S. authorities could hit Volkswagen (VW) with $18 billion in fines, as the Environmental Protection Agency (EPA) and Justice Department sued the German auto maker over its emission cheating software.

The U.S. agencies filed a civil lawsuit against VW in Detroit federal court on Dec. 04. The EPA is seeking fines of up to $37,500 per diesel car that violates U.S. environmental rules, and up to $3,750 for each piece of equipment that was put there to cheat emissions tests.

There are about 500,000 diesel cars on U.S. roads from Volkswagen and its luxury brand Audi that violate the environmental rules, according to the suit. That means the fines could quickly top $18 billion if VW has to pay the full amount spelt out in the suit, according to CNN Money.

The suit is seeking only civil damages and not criminal penalties, although the EPA and Justice Department say they have not closed the door on a possible criminal action.

Volkswagen has already admitted its cars had illegal software installed to fool emissions tests into thinking they complied with regulations, when in fact they would dump up to 40 times the allowed level of pollutants into the air.


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