EPA: Volkswagen Intentionally Violated Emissions Rules

The Environmental Protection Agency on Friday accused Volkswagen of intentionally circumventing smog-reduction standards and ordered the German automaker to recall about half million diesel vehicles sold in the United States.

The EPA said VW could face fines of up to $18 billion and criminal prosecution for installing so-called “defeat device” software that allows vehicles to emit up to 40 times more diesel pollution than is legally allowed.

If VW doesn’t voluntarily recall the the roughly 482,000 affected vehicles sold in the United States since 2009 — 2.0 liter Volkswagen Golf, Jetta, Sportswagen, Beetle and Audi A3 vehicles — a recall could be forced by court order, The New York Times and The Detroit News are reporting.

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The EPA said the software intentionally “detects when the car is undergoing official emissions testing, and turns full emissions controls on only during the test,” then turns the controls off during normal driving conditions, allowing the vehicles to nitrogen oxide pollutants that contribute to the creation of ozone and smog. The pollutants are linked to a range of respiratory health problems.

“We expected better from VW,” said Cynthia Giles, assistant administrator of the Office of Enforcement and Compliance Assurance. “We take this very seriously.”

The discovery has spurred the EPA and other officials to investigate whether other automakers have installed software to override emissions controls with their diesel vehicles, the EPA said in a statement to The Detroit News.

Volkswagen has limited operations in Michigan after moving its U.S. headquarters to Virginia in 2007. The automaker maintains a call center in the former headquarters building in Auburn Hills.