Wednesday , October 18 2017

US, EU vow auto emissions crackdown – Automakers could see higher costs from additional tests

WASHINGTON/BRUSSELS, Sept 27, (Agencies): Government regulators on both sides of the Atlantic vowed on Friday to toughen auto emissions tests in the wake of Volkswagen’s admission it cheated on diesel emissions, but some officials and environmentalists doubted the pledges would be easily achieved.

The US Environmental Protection Agency notified auto manufacturers in a letter that they could require additional tests for “any vehicle” to determine whether it meets emission standards under normal road conditions, not just at controlled testing facilities.

“We aren’t going to tell them what these tests are. They don’t need to know,” Chris Grundler, an EPA official, told reporters. Any changes could mean higher costs for automakers, particularly any that become subject to recalls or production changes, as well as bigger regulatory hurdles in obtaining certifications.

Across the Atlantic, Elzbieta Bienkowska, the EU commissioner responsible for industry, said: “Our message is clear: zero tolerance on fraud and rigorous compliance with EU rules. We need full disclosure and robust pollutant emissions tests in place.”

Earlier this week, Volkswagen said 11 million vehicles worldwide were fitted with software similar to the kind that allowed the company to cheat US tests, but said it was not turned on in the bulk of them. Volkswagen could face $18 billion in fines from the EPA after it admitted using software in diesel cars that evades tests. The company has said it would set aside $7.3 billion (6.5 billion euros) in its third-quarter accounts to help cover the costs of the biggest scandal in its 78-year history, blowing a hole in analysts’ profit forecasts.

The EPA’s Grundler said Volkswagen embedded a sophisticated algorithm within 100 million lines of software code to defeat current emissions test procedures and that regulators aim to root out any so-called “defeat devices.”

The EU has developed emissions tests for real road driving, not simply in labs, that will be phased in beginning in January next year.

But an EU source said there could still be difficulties in introducing new test procedures that match real-world driving conditions after years of official inertia and industry resistance to change.

Strategies

Some auto companies have used strategies to pass tests in lab conditions, such as using lighter materials in cars, and that is why real-world driving tests are being rolled out in the EU.

“I still think the industry will say it’s hard because they always do,” one EU source said, speaking on condition of anonymity.

Lucia Caudet, a Commission spokeswoman, said the Commission only sets the regulatory framework. “Let me be very clear: the Commission does not itself do the policing. This is done on the ground by Member State authorities.”

Despite pledges in several European nations to get tougher, there are also pressures in many countries where many people work for auto companies.

Germany faces resistance to any toughening of the test regime from its powerful motor industry. It markets its cars on a promise of clean performance, but tells the Commission its engines take years to design and new pollution standards should not be rushed.

In 2013, Chancellor Angela Merkel won a delay in a law compelling carmakers to meet new CO2 emissions standards, saying jobs were at stake.

More recently, EU officials, speaking on condition of anonymity, said Germany had been lobbying for flexibility to soften a proposed new law to supplement laboratory testing with driving new cars on real roads.

In the United States, a clean air advocate expressed some doubt that the EPA, which operates under a limited budget, could adapt its testing to quickly make a difference.

“It remains to be seen” if EPA can quickly improve its emissions testing, said Frank O’Donnell, president of Clean Air Watch. “I hope so, but in the case of VW, this horse has already left the barn.”

Meanwhile, German media reported Sunday that Volkswagen was warned years ago about the use of illegal tricks to defeat emissions tests.

The German automaker admitted last week that it used special software to fool US emissions tests for its diesel vehicles. Some 11 million VW diesel cars built since 2008 are affected by the scandal.

German weekly Bild am Sonntag reported that VW’s internal investigation has found a 2007 letter from parts supplier Bosch warning Volkswagen not to use the software during regular operation.

Separately, the Frankfurter Allgemeine Sonntagszeitung reported that a Volkswagen technician raised concerns about illegal practices in connection with emissions levels in 2011. The weekly also cited VW’s internal investigators.

A spokesman for Volkswagen declined to comment on the reports, saying that as a matter of principle the company wouldn’t comment on what he called “rumors and speculation.”

“Volkswagen is working with all its strength to conduct a thorough and merciless investigation of this matter,” Andreas Lampersbach said in an email.

VW would hold those responsible for rigging the emissions test to account and discuss technical solutions for the problem with authorities, he said, citing a statement by the company’s supervisory board. “Afterward we will provide a timetable to modify the vehicles of affected customers. This will take several weeks.”

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