Cecily Zamora
The Volkswagen emissions scandal saw the company cheat emissions regulations, with the Ninth U.S. Circuit Court of Appeals ruling that Volkswagen was liable for further legal damage lawsuits brought by state and local governments in the emissions fraud. The company also faced investigations by 48 United States state attorneys, as well as a ban on 8 VW Group diesel models cars in the UK.
| Characteristics | Values |
|---|---|
| Cheating emissions regulations | VW Group diesel models cars were banned in August 2019 |
| Criminal investigation | Spain, Sweden, Norway |
| Ban on sales | Switzerland |
| Re-testing cars | Department for Transport |
| Legal damage lawsuits | Ninth U.S. Circuit Court of Appeals |
| Recall plans rejected | US regulators |
| Lawsuits | Arizona, West Virginia, New Mexico, Texas, Harris County, Texas |
| Investigations | 48 United States state attorneys |
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What You'll Learn
The Ninth U.S. Circuit Court of Appeals ruled that VW was liable for further legal damage lawsuits
In 2015, the Volkswagen emissions scandal came to light, revealing that the company had cheated emissions regulations. This led to a criminal probe in Spain, a preliminary investigation in Sweden, and a ban on sales of Volkswagen diesel cars in Switzerland. The scandal also resulted in the UK's Department for Transport announcing that it would begin re-testing cars from various manufacturers to ensure the use of "defeat devices" was not industry-wide.
In the US, the scandal resulted in several lawsuits and investigations. The Ninth U.S. Circuit Court of Appeals ruled on 1 June 2020 that Volkswagen was liable for further legal damage lawsuits brought by state and local governments. This unanimous ruling paved the way for two counties in Florida and Utah to proceed with litigation against Volkswagen and opened the door for potential further cases across the US. By June 2020, VW had already spent $33.3 billion in settlements and other costs, including buybacks of the excessively polluting diesel vehicles.
In response to the ruling, VW stated that it would ask the circuit court to review the decision and, if necessary, take the case to the U.S. Supreme Court. This demonstrates VW's determination to challenge the legal consequences of its actions in the emissions scandal.
The scandal also had financial repercussions for VW, with Norway's sovereign wealth fund, one of the company's biggest investors, announcing legal action against the company as part of a class-action lawsuit in Germany. Additionally, the states of Arizona, West Virginia, New Mexico, and Texas, as well as Harris County, Texas, all filed separate lawsuits seeking restitution from VW. As of February 2016, the company faced investigations by 48 United States state attorneys.
The Volkswagen emissions scandal highlights the global impact of a company's actions and the subsequent legal and financial consequences. With investigations and lawsuits spanning multiple countries, VW faced significant challenges in addressing the fallout from its emissions violations.
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VW's actions were deemed to be emissions fraud
In the US, the Ninth U.S. Circuit Court of Appeals ruled on 1 June 2020 that Volkswagen was liable for further legal damage lawsuits brought by state and local governments in the emissions fraud. This paved the way for two counties in Florida and Utah to proceed with litigation against Volkswagen, as well as potential further cases brought by jurisdictions in the US. By June 2020, VW had already expended $33.3 billion in settlements and other costs including buybacks of the excessively polluting diesel vehicles.
The UK House of Commons Transport Committee said it was not credible for VW to say it was unaware of the exact contribution the defeat device software made to passing type-approval tests. The question of its contribution lies at the heart of the question on whether VW broke the law.
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VW was investigated for possible economic crimes
The VW emissions scandal involved the company cheating emissions regulations. In August 2019, the government announced a ban on eight VW Group diesel models cars for this reason. As of 28 October 2015, a Spanish court had opened a criminal probe against Volkswagen AG, to establish whether the company's actions broke any local laws. As of 29 September 2015, Sweden's chief prosecutor was considering starting a preliminary investigation into Volkswagen's emissions violations. On 26 September 2015, Switzerland banned sales of Volkswagen diesel cars, marking the most severe step taken so far by a government in reaction to the emissions crisis. The Department for Transport announced on 24 September 2015 that it would begin re-testing cars from a variety of manufacturers to ensure the use of "defeat devices" was not industry-wide.
In the US, the Ninth U.S. Circuit Court of Appeals ruled on 1 June 2020 that Volkswagen was liable for further legal damage lawsuits brought by state and local governments in the emissions fraud. By June 2020, VW had already expended $33.3 billion in settlements and other costs including buybacks of the excessively polluting diesel vehicles. The states of Arizona, West Virginia, New Mexico, and Texas, as well as Harris County, Texas, all filed separate lawsuits seeking restitution from VW. The company also faces investigations by 48 United States state attorneys (as of February 2016).
VW would not confirm whether the vehicles would have passed emissions tests without the defeat device software stating that it was not possible to confirm that for technical reasons, “If you simply deleted this particular software programme (without amending anything else), the vehicle would not function.”
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VW's recall plans were rejected by US regulators
In 2016, US regulators rejected Volkswagen's recall plans for its 2.0-litre diesel engines, stating that the plans did not "adequately address overall impacts on vehicle performance, emissions and safety". The company said it would continue discussions with CARB and work on a package that would satisfy its customers and regulators.
The Volkswagen emissions scandal involved the company cheating emissions regulations. In 2019, the government banned eight VW Group diesel models for this reason. In 2020, the Ninth U.S. Circuit Court of Appeals ruled that Volkswagen was liable for further legal damage lawsuits brought by state and local governments. This paved the way for two counties in Florida and Utah to proceed with litigation against Volkswagen, as well as potential further cases brought by jurisdictions in the US. By June 2020, VW had already expended $33.3 billion in settlements and other costs, including buybacks of the excessively polluting diesel vehicles.
The scandal also led to investigations and legal action in several other countries, including Spain, Sweden, Switzerland, Norway, and Romania. In Norway, prosecutors opened a criminal investigation into possible economic crimes committed by VW, and the country's sovereign wealth fund announced legal action against the company.
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VW faced investigations by 48 United States state attorneys
In 2015, VW was found to have cheated emissions regulations, which led to a ban on eight VW Group diesel models cars. As a result, VW faced investigations by 48 United States state attorneys.
The scandal involved VW's use of "defeat device" software, which allowed its vehicles to meet Euro 5 standards during emissions tests, while emitting higher levels of pollutants during normal driving conditions. This practice was found to be in violation of emissions regulations in multiple countries, including the United States, Spain, Sweden, Switzerland, and Norway.
The Ninth U.S. Circuit Court of Appeals ruled in June 2020 that Volkswagen was liable for further legal damage lawsuits brought by state and local governments in the emissions fraud. This ruling allowed two counties in Florida and Utah to proceed with litigation against Volkswagen, with potential for further cases from other jurisdictions in the US.
By June 2020, VW had already spent $33.3 billion in settlements and other costs, including buybacks of the excessively polluting diesel vehicles. The company stated that it would ask the circuit court to review the ruling and, if necessary, take the case to the U.S. Supreme Court.
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Frequently asked questions
VW was found to be liable for legal damage lawsuits brought by state and local governments in the emissions fraud.
VW had to pay $33.3 billion in settlements and other costs, including buybacks of the excessively polluting diesel vehicles.
In January 2016, US regulators rejected VW's recall plans for its affected 2.0-litre diesel engines, claiming that these "do not adequately address overall impacts on vehicle performance, emissions and safety".
