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posted by n1 on Friday January 13 2017, @05:51PM   Printer-friendly
from the lawyers-with-new-audis dept.

A day after the Justice Department reached a settlement with Volkswagen, another automaker has been accused of using software to cheat U.S. Environmental Protection Agency emissions testing:

The U.S. Environmental Protection Agency (EPA) today issued a notice of violation to Fiat Chrysler Automobiles N.V. and FCA US LLC (collectively FCA) for alleged violations of the Clean Air Act for installing and failing to disclose engine management software in light-duty model year 2014, 2015 and 2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0 liter diesel engines sold in the United States. The undisclosed software results in increased emissions of nitrogen oxides (NOx) from the vehicles. The allegations cover roughly 104,000 vehicles. EPA is working in coordination with the California Air Resources Board (CARB), which has also issued a notice of violation to FCA. EPA and CARB have both initiated investigations based on FCA's alleged actions.

"Failing to disclose software that affects emissions in a vehicle's engine is a serious violation of the law, which can result in harmful pollution in the air we breathe," said Cynthia Giles, Assistant Administrator for EPA's Office of Enforcement and Compliance Assurance. "We continue to investigate the nature and impact of these devices. All automakers must play by the same rules, and we will continue to hold companies accountable that gain an unfair and illegal competitive advantage."

"Once again, a major automaker made the business decision to skirt the rules and got caught," said CARB Chair Mary D. Nichols. "CARB and U.S. EPA made a commitment to enhanced testing as the Volkswagen case developed, and this is a result of that collaboration."

Also at Reuters and Ars Technica.

[Continues...]


The DoJ has reached an agreement with Volkswagen. Meanwhile, additional Volkswagen executives and employees have been indicted but not arrested, as they are believed to be in Germany:

Volkswagen AG (VW) has agreed to plead guilty to three criminal felony counts and pay a $2.8 billion criminal penalty as a result of the company's long-running scheme to sell approximately 590,000 diesel vehicles in the U.S. by using a defeat device to cheat on emissions tests mandated by the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), and lying and obstructing justice to further the scheme, the Justice Department announced today.

In separate civil resolutions of environmental, customs and financial claims, VW has agreed to pay $1.5 billion. This includes EPA's claim for civil penalties against VW in connection with VW's importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud. In addition, the EPA agreement requires injunctive relief to prevent future violations. The agreements also resolve alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

[...] In addition, a federal grand jury in the Eastern District of Michigan returned an indictment today charging six VW executives and employees for their roles in the nearly 10-year conspiracy. Heinz-Jakob Neusser, 56; Jens Hadler, 50; Richard Dorenkamp, 68; Bernd Gottweis, 69; Oliver Schmidt, 48; and Jürgen Peter, 59, all of Germany, are charged with one count of conspiracy to defraud the United States, defraud VW's U.S. customers and violate the Clean Air Act by making false representations to regulators and the public about the ability of VW's supposedly "clean diesel" vehicles to comply with U.S. emissions requirements. The indictment also charges Dorenkamp, Neusser, Schmidt and Peter with Clean Air Act violations and charges Neusser, Gottweis, Schmidt and Peter with wire fraud counts. This case has been assigned to U.S. District Judge Sean F. Cox of the Eastern District of Michigan.

Also at NYT and Reuters.

Previously: FBI Arrests Volkswagen Executive for Role in Emissions Conspiracy


Original Submission #1Original Submission #2

 
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  • (Score: 3, Insightful) by bradley13 on Friday January 13 2017, @07:50PM

    by bradley13 (3053) on Friday January 13 2017, @07:50PM (#453427) Homepage Journal

    I'm no expert in the area, but the point of the post is: the regulations are deliberately impossible to meet. In order to stay in business, essentially all auto manufacturers cheat. Why are the regulations impossibly high? Why are some punished and others not?

    As I said, I know nothing of the auto industry. But I did spent years working in government procurement. Above a certain level, it's not about technical competence, it's about connections. Offering cushy revolving-door jobs to government bureaucrats. Placing subcontracts in the "right" Congressional districts. Contributed to the "right" foundations and campaign funds. It would be surprising - indeed astounding - if that didn't play a role here.

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  • (Score: 2) by choose another one on Friday January 13 2017, @09:03PM

    by choose another one (515) Subscriber Badge on Friday January 13 2017, @09:03PM (#453457)

    The regulations are deliberately impossible so that big companies can all be fined sooner or later - and it is not just this way in the auto industry. Big companies are now experts at legally avoiding tax, fines are the new tax. The big corps set aside large pots of money to pay the inevitable fines, as a cost of doing business in country X. Their cost of doing business may well end up the same as if they bothered to pay tax.

    VW was just the first to get caught. Their cars are usually not the dirtiest in real-world tests - in fact they are often some of the cleanest - so those with their eyes open always knew this was a systemic problem, it was just a matter of time before other mfrs got caught. VW have very possibly cut a deal that involves ratting out their competitors, there are ways you can turn being first-caught into a long term advantage.

  • (Score: 2) by mcgrew on Saturday January 14 2017, @05:02PM

    by mcgrew (701) <publish@mcgrewbooks.com> on Saturday January 14 2017, @05:02PM (#453833) Homepage Journal

    Except they're not impossible because other automakers are meeting them. Can't meet those goals with a diesel engine? Use gasoline engines, which are far easier to make clean. Or better yet, electric.

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