EPA probing VW’s profit from emissions cheating

The Environmental Protection Agency (EPA) is investigating the extent to which Volkswagen profited from cheating on diesel car emissions tests.

Christopher Grundler, who heads the EPA’s Transportation and Air Quality Office, will provide some details about the agency’s ongoing investigation to lawmakers Thursday, including that the economic benefits of the emissions testing scandal will play into the punishment and fines that Volkswagen will face.

{mosads}“As part of the investigation, we intend to assess the scope of VW’s liability under the Clean Air Act, and whether there are additional vehicles with defeat devices,” Grundler wrote in prepared testimony released by the House Energy and Commerce Committee, whose Oversight subcommittee will host the Thursday hearing.

“We intend to assess the economic benefit to VW of noncompliance and pursue appropriate penalties, as well as assess the excess pollution from VW’s violations and appropriate ways to mitigate that harm,” he’ll say.

Michael Horn, head of the German carmaker’s United States division, will also appear at the hearing, although he will be questioned separately from Grundler.

Volkswagen admitted last month that nearly 500,000 of its diesel cars sold since 2009 were programmed to reduce their pollution when undergoing EPA tests. In normal driving, they emitted up to 40 times more nitrogen oxides than allowed under United States rules.

The scandal quickly spread globally, where the company says 11 million vehicles had a similar “defeat device.”

Horn has apologized for the cheating, telling reporters last month, “Let’s be clear about this, our company was dishonest with government regulators and with all of you. We have totally screwed up.”

Horn will apologize again to Congress Thursday and say that he became aware of emissions compliance problems more than a year ago, when the EPA first approached Volkswagen about them. Volkswagen only admitted to the cheating in September.

“These events are deeply troubling. I did not think that something like this was possible at the Volkswagen Group,” Horn said. “We have broken the trust of our customers, dealerships, and employees, as well as the public and regulators.”

Horn will also reveal that the company has withdrawn its applications with the EPA for emissions certification for model-year 2016 diesel cars, certifications that are necessary to sell the vehicles.

Volkswagen faces fines of up to $18 billion under the Clean Air Act, and will be responsible for correcting the problems in all vehicles on the road.

In addition to the EPA, the Justice Department is investigating the scandal for potential criminal charges, and officials in multiple countries have launched inquiries.