Automaker Volkswagen recently admitted that the company's diesel vehicles sold within the United States have software installed in them that are meant to cheat environmental pollution tests. Experts said that the admission was brought by the increased pressure from the Environmental Protection Agency.
When the issue first surfaced, Volkswagen executives insisted that the discrepancies regarding its diesel cars and high pollution test results were a product of technical error and not a deliberate move to deceive regulators investigating the issue.
According to The New York Times, Volkswagen changed its stance about the issue when the Environmental Protection Agency threatened to withhold approval for the upcoming 2016 Volkswagen and Audi models. The regulatory agency sent a letter to Volkswagen in order to let the company know about its plans.
Since the issue surfaced to the public domain on Sept. 18, Volkswagen has been scrambling to contain the damage. Volkswagen has already issued a public apology. As part of its contingency plan, Volkswagen announced that it will stop selling diesel-powered 2015 to 2016 model cars.
Under the Clean Air Act of the United States, Volkswagen could face penalties of up to $35 million if found out that the company violated safety regulations. On a similar note, General Motors paid a much hefty sum violation that has been link to more than 124 deaths.
According to Washington Post, based on the Clean Air Act, Volkswagen will have to pay $37,500 for each recalled vehicle. Experts estimate that Volkswagen will pay around $18 billion on penalty.
"The Clean Air Act statutory scheme gives E.P.A more power and flexibility to move more quickly than N.H.T.S.A," University of Richmond professor Carl Tobias commented. "E.P.A. also seems more tough-minded and savvy about how to be effective in this arena."