Editing Volkswagen Group (section)

====Emissions scandal, 2015====

{{Main|Volkswagen emissions scandal}}

On 18 September 2015, the US EPA announced that Volkswagen had installed a "defeat device" software code in the diesel models sold in the US from 2009 to 2015.<ref name="yosemite.epa.gov">{{cite web|url=https://www.epa.gov/newsreleases/epa-california-notify-volkswagen-clean-air-act-violations-carmaker-allegedly-used|title=09/18/2015: EPA, California Notify Volkswagen of Clean Air Act Violations / Carmaker allegedly used software that circumvents emissions testing for certain air pollutants|work=epa.gov|archive-url=https://web.archive.org/web/20160911191545/https://www.epa.gov/newsreleases/epa-california-notify-volkswagen-clean-air-act-violations-carmaker-allegedly-used|archive-date=11 September 2016|url-status=dead|access-date=25 September 2015}}</ref> The code was intended to detect when an emissions test was being conducted, and altered emissions controls for better compliance. Off the test stand, the controls were relaxed, and emissions jumped 35 to 40 times regulatory levels according to investigators at West Virginia University and the California Air Resources Board. About 482,000 vehicles are under the recall order, a potential $18 billion ($37,500 per violation) in fines are pending, and news accounts speculate a criminal indictment for the deception is certain.<ref>{{cite web|url=https://huffingtonpost.com/entry/volkswagen-executives-prosecution_55fd9749e4b00310edf74f5d|title=The Justice Department Pledge To Prosecute White-Collar Criminals Is About To Face A Major Test|author=Bloomberg/Getty Images|date=19 September 2015|work=The Huffington Post|access-date=25 September 2015|archive-url=https://web.archive.org/web/20150923115647/http://www.huffingtonpost.com/entry/volkswagen-executives-prosecution_55fd9749e4b00310edf74f5d|archive-date=23 September 2015|url-status=live}}</ref><ref>{{cite magazine|url=https://www.wired.com/2015/09/epa-accuses-volkswagen-cheating-emissions-testing-482000-cars/|title=EPA Accuses VW of Cheating Smog Testing on 482,000 Cars|date=18 September 2015|magazine=WIRED|access-date=25 September 2015|archive-url=https://web.archive.org/web/20150923141416/http://www.wired.com/2015/09/epa-accuses-volkswagen-cheating-emissions-testing-482000-cars/|archive-date=23 September 2015|url-status=live}}</ref> The VW Group CEO, [[Martin Winterkorn]], said he was "deeply sorry" and ordered an external investigation.<ref>{{cite web|url=https://www.usatoday.com/story/money/cars/2015/09/20/volkswagen-ceo-martin-winterkorn-apologizes-epa-clean-air-act-emissions-violations/72519678/|title=Volkswagen CEO apologizes, orders external probe on emissions allegations|date=20 September 2015|work=USA TODAY|access-date=25 September 2015|archive-url=https://web.archive.org/web/20150924121232/http://www.usatoday.com/story/money/cars/2015/09/20/volkswagen-ceo-martin-winterkorn-apologizes-epa-clean-air-act-emissions-violations/72519678/|archive-date=24 September 2015|url-status=live}}</ref> The software code was only revealed when the EPA refused to certify VW's 2016 models for sale in the US unless the corporation provided full disclosure.<ref>{{cite news|url=https://www.bloomberg.com/news/articles/2015-09-19/volkswagen-emissions-cheating-found-by-curious-clean-air-group|title=VW's Emissions Cheating Found by Curious Clean-Air Group |newspaper=Bloomberg.com|date=19 September 2015 |access-date=17 March 2019}}</ref> On Sunday, 20 September 2015, VW Group announced it was halting the sale of its four-cylinder diesel models in the US.<ref>{{cite web|url=https://news.yahoo.com/volkswagen-investigate-breach-u-environment-rules-130056470--finance.html|title=Volkswagen to halt U.S. sales of some 2015 diesel cars|date=20 September 2015|work=Yahoo News|access-date=25 September 2015|archive-url=https://web.archive.org/web/20150925143955/http://news.yahoo.com/volkswagen-investigate-breach-u-environment-rules-130056470--finance.html|archive-date=25 September 2015|url-status=live}}</ref> The US EPA press release on its Notice of Violation,<ref name="yosemite.epa.gov"/> and the California Air Resources Board letter<ref>{{cite web|url=http://www.arb.ca.gov/newsrel/in_use_compliance_letter.htm|title=ARB Letter to VW|work=ca.gov|access-date=25 September 2015|archive-url=https://web.archive.org/web/20150924171219/http://www.arb.ca.gov/newsrel/in_use_compliance_letter.htm|archive-date=24 September 2015|url-status=dead}}</ref> dated 18 September 2015 contain significant chronological detail of the agencies interaction with VW on the issue.

On 22 September 2015, VW AG admitted that 11 million cars worldwide had been [[Volkswagen emissions scandal|fitted with software intended to deceive emissions testing]]. The company issued a profit warning, saying it had set aside $7 billion to fix the fraud.<ref>{{cite news|url=https://www.nytimes.com/2015/09/23/business/international/volkswagen-diesel-car-scandal.html|title=Volkswagen Says 11 Million Cars Worldwide Are Affected in Diesel Deception|first=Jack|last=Ewing|newspaper=The New York Times|date=22 September 2015|access-date=17 March 2019|archive-url=https://web.archive.org/web/20170304002510/https://www.nytimes.com/2015/09/23/business/international/volkswagen-diesel-car-scandal.html|archive-date=4 March 2017|url-status=live}}</ref> On 23 September 2015, Martin Winterkorn announced his resignation from the CEO position after a crisis meeting of the company board.<ref>{{cite web|url=https://finance.yahoo.com/news/volkswagen-ceo-steps-down-takes-160222605.html|title=Volkswagen CEO steps down, takes responsibility for scandal|date=24 September 2015|work=Yahoo Finance|access-date=25 September 2015|url-status=dead|archive-url=https://web.archive.org/web/20150925085824/http://finance.yahoo.com/news/volkswagen-ceo-steps-down-takes-160222605.html|archive-date=25 September 2015}}</ref> On 25 September 2015 [[Matthias Müller (businessman)|Matthias Müller]] was named CEO.<ref>{{cite news|url=https://www.nytimes.com/2015/09/26/business/volkswagen-namesmuller-an-insider-as-chief-executive.html|title=Volkswagen Names Matthias Müller, an Insider, as Chief Executive|first1=Jack|last1=Ewing|first2=Bill|last2=Vlasic|newspaper=The New York Times|date=25 September 2015|access-date=17 March 2019|archive-url=https://web.archive.org/web/20181127234450/https://www.nytimes.com/2015/09/26/business/volkswagen-namesmuller-an-insider-as-chief-executive.html|archive-date=27 November 2018|url-status=live}}</ref> Müller was the head of the Porsche marque within the VW corporate umbrella.<ref>{{cite web|url=http://www.businessinsider.com/report-volkswagen-ceo-is-out-2015-9|title=Volkswagen's CEO is staying at the company - Business Insider|date=22 September 2015|work=Business Insider|access-date=25 September 2015|archive-url=https://web.archive.org/web/20150924223828/http://www.businessinsider.com/report-volkswagen-ceo-is-out-2015-9|archive-date=24 September 2015|url-status=live}}</ref>

On 21 April 2017, a U.S. federal judge ordered Volkswagen "to pay a $2.8 billion criminal fine for rigging diesel-powered vehicles to cheat on government emissions tests". The "unprecedented" plea deal formalized a punishment that Volkswagen AG agreed to earlier in 2017.<ref name=wsj-vk-plea>{{cite news |last=Rogers |first=Christina |date=21 April 2017 |title=Judge Slaps VW With $2.8 Billion Criminal Fine in Emissions Fraud |url=https://www.wsj.com/articles/judge-slaps-vw-with-2-8-billion-criminal-fine-in-emissions-fraud-1492789096 |work=[[Wall Street Journal]] |access-date=23 April 2017 |archive-url=https://web.archive.org/web/20170423232735/https://www.wsj.com/articles/judge-slaps-vw-with-2-8-billion-criminal-fine-in-emissions-fraud-1492789096 |archive-date=23 April 2017 |url-status=live }}</ref> In addition, the plea deal includes a $1.5 billion settlement for various environmental, customs and financial violations.<ref>{{cite news|url=https://www.justice.gov/opa/pr/volkswagen-ag-agrees-plead-guilty-and-pay-43-billion-criminal-and-civil-penalties-six|title=Volkswagen AG Agrees to Plead Guilty and Pay $4.3 Billion in Criminal and Civil Penalties; Six Volkswagen Executives and Employees are Indicted in Connection with Conspiracy to Cheat U.S. Emissions Tests|date=11 January 2017|access-date=23 October 2019|archive-url=https://web.archive.org/web/20191018050709/https://www.justice.gov/opa/pr/volkswagen-ag-agrees-plead-guilty-and-pay-43-billion-criminal-and-civil-penalties-six|archive-date=18 October 2019|url-status=live}}</ref>

Overall, Volkswagen will pay more than $30 billion in penalties and lawsuit settlements related to the scandal.<ref name="charges">{{cite news |url=https://phys.org/news/2019-01-grand-jury-audi-emissions-case.html |title=Grand jury charges four Audi managers in emissions case |publisher=Phys.org |date=18 January 2019 |access-date=23 October 2019 |archive-url=https://web.archive.org/web/20191023183015/https://phys.org/news/2019-01-grand-jury-audi-emissions-case.html |archive-date=23 October 2019 |url-status=live }}</ref>