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Volkswagen Faces Massive Fines from US Regulators

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Frank Hoffman2 years ago

Accordig to Reuters, Volkswagen is now facing a plethora of fines due to an emissions scandal.

Details of Emissions Issue

Last Friday, the US Environmental Protection Agency (EPA) announced that Volkswagen had equipped its diesel powered vehicles with systems designed to circumvent US emissions standards. The vehicle’s software is designed to detect when it is being tested for emissions which causes it to switch into a low emissions mode.

When the vehicle is no longer being tested, however, the vehicle reverts to the standard mode which, according to the EPA, has the vehicles putting out more than 40 times the emissions than what their test results show.

Volkswagen Facing Astronomical Fines

Several news outlets report that the auto manufacturer, Volkswagen has set aside over 7 billion dollars in order to settle the anticipated fines and expenses the company is facing in the wake of these recent revelations.

The issue has now grown beyond US shores with the auto maker admitting to using the systems in vehicles sold world-wide, which has prompted several nations to open their own investigations into the company’s practices.  Volkswagen issued a statement claiming to be working on removing the software from the affected vehicles in such a way so as not to damage their performance.

Volkswagen could be fined over 18 billion dollars from US regulators alone and could potentially face more fines pending the completion of international investigations. The company’s stocks have fallen sharply since news of this incident was broken.


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