VW exec sees US fixes soon in emissions test cheating

The cars affected included diesel vehicles, SUVs sold since the 2009 model year, and some recent diesel models that were sold by Audi and Porsche, brands owned by VW.

The devices helped some of Volkswagen Group’s cars pass emissions tests in a lab but allowed the cars to pollute more heavily when driving under normal conditions.

Although $48 billion is a lot of money, based on previous similar situations, this sum might get smaller at the end of penance.

Equinet analyst Holger Schmidt cut his rating on VW shares to “reduce” from “neutral”.

“We haven’t identified a satisfactory way forward, but those discussions are going to continue”, Ms. McCarthy said Thursday. In total, up to 11 million Volkswagen group cars are affected by this issue, but the large majority of these cars we have already worked out approved solutions.

“For more than 60 years, the Volkswagen brand has been at home in the United States”.

VW CEO Matthias Mueller will meet with Environmental Protection Agency Administrator Gina McCarthy on Wednesday in the highest-level talks since VW’s emissions scandal became public in September. Monday’s legal action doesn’t include criminal charges against Volkswagen or its executives, and federal prosecutors are in the midst of a separate criminal investigation in to the auto maker.

“We’re alleging that they knew what they were doing, they intentionally violated the law and that the consequences were significant to health”, said a senior Justice Department official.

The difficulties highlight the lack of progress VW has made in winning back the confidence of USA regulators and drivers about four months after it admitted to cheating diesel emissions tests and promised to turn over a new leaf.

The lawsuit also alleges Volkswagen tampered with emissions controls in several 3.0-litre diesel models.

VW itself declined to confirm whether or not it was withholding documents, saying only it was not commenting on ongoing investigations.

To win the suit, the government will not have to prove that VW intentionally deceived regulators or customers by installing the defeat devices, only that the cheating occurred. “I don’t think there is any defense in a civil suit”, he said.

A little over 5,50,000 Volkswagen vehicles have been affected by the scandal. The regulator declared it will insist on the idea of making VW come up with “effective appropriate remedies as expeditiously as possible at no cost to owners”. Different countries including US, China and others are now investigating the giant carmaker.