When Cheating Drives a Fine

In 2015, a software glitch turned diesel cars into silent polluters, sparking a $2.8 billion fallout.

TL;DR
• Volkswagen used defeat devices to cheat emissions tests, violating the Clean Air Act.
• EPA imposed civil and criminal penalties, totaling $4.3 billion.
• Multiple settlements and emissions fixes were approved to reduce NOx emissions.

Summary
The EPA’s civil enforcement action against Volkswagen, Audi, and Porsche targeted diesel vehicles equipped with software that disables emissions controls during normal driving, resulting in nitrogen oxide emissions up to 40 times the legal limit. The case involved roughly 590,000 model‑year 2009‑2016 cars, spanning 2.0‑liter and 3.0‑liter engines across multiple brands and model lines.
• Require pre‑deployment ethical impact assessments for emission‑related software.
• Publish transparent compliance reports for any emissions‑control modifications.
• Establish a clear, independent redress process for affected vehicle owners.
• Implement mandatory data‑privacy safeguards for diagnostic and emissions data.
• Conduct regular third‑party audits of onboard software to verify adherence to regulatory standards.

Key milestones began with EPA Notices of Violation in September 2015, followed by the Department of Justice filing a complaint in January 2016. Volkswagen entered multi‑billion‑dollar settlements in June and December 2016, pleaded guilty to felony counts in January 2017, and agreed to pay $4.3 billion in combined criminal and civil penalties. The settlements also mandated injunctive relief to prevent future violations and created an Environmental Mitigation Trust managed by Wilmington Trust.

Subsequent regulatory actions required Volkswagen to develop and submit emissions modification plans, which EPA and CARB reviewed and approved for various model years between 2017 and 2018. Approvals covered fixes for 2.0‑liter diesel models, 3.0‑liter SUVs, and specific passenger cars, while a proposed modification for certain manual‑transmission Passat models was disapproved. The agency also incorporated defeat‑device screening protocols into its compliance oversight program, reinforcing systematic monitoring of software integrity across the automotive sector.

The enforcement outcome underscores the necessity for manufacturers to embed accountability mechanisms throughout the product lifecycle. Ongoing oversight, transparent reporting, and stakeholder consultation are essential to mitigate unintended harmful applications of vehicle software and to safeguard public health from excess NOx emissions.

Will stricter oversight prevent future corporate shortcuts in environmental compliance?