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.
Previously: FBI Arrests Volkswagen Executive for Role in Emissions Conspiracy
Related Stories
A Volkswagen executive has been arrested and charged with conspiracy to defraud the U.S. government just days ahead of a likely settlement between Volkswagen and the Justice Department:
The Federal Bureau of Investigation has arrested a Volkswagen executive who faces charges of conspiracy to defraud the United States, two people with knowledge of the arrest said on Sunday, marking an escalation of the criminal investigation into the automaker's diesel emissions cheating scandal. Oliver Schmidt, who led Volkswagen's regulatory compliance office in the United States from 2014 to March 2015, was arrested on Saturday by investigators in Florida and is expected to be arraigned on Monday in Detroit, said the two people, a law enforcement official and someone familiar with the case.
After a study by West Virginia University first raised questions over Volkswagen's diesel motors in early 2014, Mr. Schmidt played a central role in trying to convince regulators that excess emissions were caused by technical problems rather than by deliberate cheating. Much of the data presented to regulators was fabricated, officials of the California Air Resources Board have said. Mr. Schmidt continued to represent Volkswagen after the company admitted in September that cars were programmed to dupe regulators. He appeared before a committee of the British Parliament in January, telling legislators that Volkswagen's behavior was not illegal in Europe.
Meanwhile, UK VW owners have filed a class action against the company, seeking at least £3,000 or more per owner.
(Score: 4, Informative) by DeathMonkey on Friday January 13 2017, @07:06PM
Arrested Volkswagen Exec Faces a Possible Life Sentence Over Diesel Scandal [roadandtrack.com]
The eleven felonies he's charged with could mean a maximum of 169 years in jail.
Even a plea will result in significant jail time if convicted.
(Score: 4, Informative) by AnonTechie on Friday January 13 2017, @08:59PM
Just read this about Renault. Wonder where this emission scandal will reach !
Renault to be investigated over diesel emissions 'cheating' [theguardian.com]
Albert Einstein - "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
(Score: 2) by DannyB on Friday January 13 2017, @09:54PM
This emission scandal could cause vehicle makers to reconsider using diesel engines at all. Even without cheating devices.
For some odd reason all scientific instruments searching for intelligent life are pointed away from Earth.
(Score: 5, Insightful) by bob_super on Friday January 13 2017, @07:11PM
Like the poor ISPs oppressed by FCC Tom, those brave Job Creators will be freed from excessive EPA oversight next Friday, and finally able to properly self-regulate while the Market decides of their fate.
We can all take a deep breath of relief for that ... right now.
Seriously, don't try the deep breathing thing after next Friday. We've got China and India to catch, make America #1 in smog again.
(Score: 3, Funny) by DannyB on Friday January 13 2017, @09:57PM
If the government won't let the EPA protect our clean air, then I'll just hold my breath until an administration comes along that will.
Or Trump could privatize the EPA. If people want clean air, they should pay for it. Do you think clean air just grows on trees.
For some odd reason all scientific instruments searching for intelligent life are pointed away from Earth.
(Score: 0) by Anonymous Coward on Friday January 13 2017, @09:59PM
When it comes to ISPs I don't mind if the free market self regulates. A free market will result in economic efficiency. The problem is that this isn't a free market. ISPs have managed to coerce governments into limiting competition and so newcomers can't really enter into the market. It's the same for so many other industries. The result is a loss of economic efficiency.
In the case of environmental protection the free market isn't a solution because we value environmental protection over economic efficiency. Economic efficiency may work against environmental protection and so it's the government's job to protect the environment even if against the interests of economic efficiency or to at least find a fair balance that both results in a fair amount of economic efficiency without greatly harming the environment.
(Score: 3, Insightful) by bradley13 on Friday January 13 2017, @07:12PM
...look at Coyote Blog [coyoteblog.com]. A few quotes to whet your appetite:
"Cheating incidents all demonstrated that automakers had hit a wall on diesel emissions compliance -- the regulations had gone beyond what automakers could comply with..."
"More importantly, the regulators KNEW it. ...many regulations were impossible to comply with and so 'compliance trump cards' were built into the system."
"There's been a fuel computer "test mode" for emissions testing in every GM car since... whenever. Also, often the makers have gotten away with "fleet standards" where the MPG / emissions criteria are spread across the 'fleet.'"
"Gee, I wonder if state-ownership of GM has been a factor in sudden acceleration / emissions prosecutions?"
Everyone is somebody else's weirdo.
(Score: 4, Insightful) by mcgrew on Friday January 13 2017, @07:39PM
The moral is, if you can't follow the regs, you're in the wrong business. Can't keep a kitchen clean? Don't open a restaurant. You have no right whatever to spew illegal crap that makes people sick and have every right to demand that no one does.
Mad at your neighbors? Join ICE, $50,000 signing bonus and a LICENSE TO MURDER!
(Score: 3, Insightful) by bradley13 on Friday January 13 2017, @07:50PM
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.
Everyone is somebody else's weirdo.
(Score: 2) by choose another one on Friday January 13 2017, @09:03PM
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
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.
Mad at your neighbors? Join ICE, $50,000 signing bonus and a LICENSE TO MURDER!
(Score: 3, Insightful) by bob_super on Friday January 13 2017, @08:00PM
The twist is the the regulations don't just come out of whatever Obama scribbles on the stall walls while taking a dump.
The numbers are agreed on as realistic targets by most manufacturers (all the important ones) before they get published. The timeline is defined as far enough to enable them to integrate the new techs that will help, and the "fleet averages" are carefully weighed to allow the high-profit trucks and SUVs to keep them in business while selling cars people can afford.
The administration pushes for less oil and less pollution, but emission compliance isn't a stab in the manufacturer's back...
I guess the negotiators must have either believed the advertised numbers or believed they'd never get caught, and let some targets get adopted which turn out to be too tough...
While the Europeans are also cheating, it's undeniable that they have small diesels (and small gas engines) which would comply with the US regulations adn could raise fleet averages by quite a bit. If you could convince Americans that they indeed fit inside.
(Score: 1) by khallow on Saturday January 14 2017, @01:22PM
The moral is, if you can't follow the regs, you're in the wrong business. Can't keep a kitchen clean? Don't open a restaurant. You have no right whatever to spew illegal crap that makes people sick and have every right to demand that no one does.
Unless of course, you have an "in" with the regulators. They'll just look the other way (which let us note was happening here until an independent group caught on). Then it's ok that you can't follow the regulations. We need to keep in mind here that regulation to the point of impossibility is an effective means to erect barriers to entry and gain permanent market power.
(Score: 2) by mcgrew on Saturday January 14 2017, @04:58PM
Yes, and it's up to voters to vote dishonest bastards out of office when they're caught.
Mad at your neighbors? Join ICE, $50,000 signing bonus and a LICENSE TO MURDER!
(Score: 2, Interesting) by NewNic on Friday January 13 2017, @08:28PM
Not a reliable source of information.
Hilariously, following the link, and forwards, I arrive at this article on Forbes [forbes.com], where the author of Coyote Blog, who "writes about ... economics", claims that:
and then uses this figure to claim a ridiculously low eMPG figure for electric vehicles. Actually, even if that figure were not the inverse (or somewhat close to the inverse) of the real number, his numbers would not add up: that's because he also inverts the effect of not allowing for the efficiency factor for regular cars.
In summary, the guy is an idiot who cannot perform simple arithmetic.
lib·er·tar·i·an·ism ˌlibərˈterēənizəm/ noun: Magical thinking that useful idiots mistake for serious political theory
(Score: 0) by Anonymous Coward on Friday January 13 2017, @07:24PM
I find amusing that Volkswagen "agreed" to plead guilty.
Should we be thankful to them? I mean, I almost feel we owe them something.
(Score: 3, Insightful) by n1 on Friday January 13 2017, @07:34PM
It's a step-up from paying fines whilst admitting no culpability... or paying fines for deferred prosecution because we promise to be a good corp. from now on.
(Score: 2) by bzipitidoo on Friday January 13 2017, @07:31PM
Over the years, two cars I've noticed with exceptionally, improbably good fuel economy ratings are the VW New Beetle and the Ford C-Max. The C-Max was overrated, and there was a small scandal over that. Then there was this revelation that VW cheated. And now Fiat/Chrysler may have cheated? How long now, I wonder, have VWs' competitors suspected VW was cheating, and responded by deciding they must also cheat?
Cheat to compete!
(Score: 3, Interesting) by Runaway1956 on Friday January 13 2017, @08:23PM
Government is going after executives. Early on in this scandal, those same executives were going to sacrifice a couple engineers to the government, remember? Burn the god-damned execs. Put them all in prison. I'm so sick of execs blaming all of a company's problems on lower level workers, who were just following the exec's orders.
ICE is having a Pretti Good season.
(Score: 0) by Anonymous Coward on Friday January 13 2017, @09:51PM
Didn't you read Ayn Rand? It's the lone heros that lead the almighty Industry that single-handedly save us from ourselves.
I doubt I could even write these words of gratitude had Industry Leaders not invented words and inspired me to learn them using sheer own grit and determination while I sat in a puddle of urine and connived to bring them down using the very ideas that they taught me. Can I get an AMEN?!!!
(Score: 1, Insightful) by Anonymous Coward on Saturday January 14 2017, @01:04AM
So when do American companies get targeted and brought to justice?
How about some good ole made in USA banksters..Goldman Sacs executives..etc. people and companies like that...
or maybe they are 'too connected' and make too many 'donations'...
(Score: 0) by Anonymous Coward on Saturday January 14 2017, @04:04PM
Fiat-Chrysler is also American. Nevertheless, Diesel is shit for the environment, and often imported.