Volkswagen Accused Of Cheating Emissions Rules

The Obama administration has accused Volkswagen (Other OTC: VLKAF - news) of using software to dodge environmental standards in nearly half a million vehicles.

US and California environmental regulators said the German carmaker deliberately circumvented clean air rules on diesel cars.

The Environmental Protection Agency (EPA) said the software was used in four-cylinder Volkswagen and Audi (Other OTC: AUDVF - news) diesel cars from 2009-15.

Cynthia Giles, an enforcement officer at the agency, told reporters: "Put simply, these cars contained software that turns off emissions controls when driving normally and turns them on when the car is undergoing an emissions test."

She (Munich: SOQ.MU - news) said the feature, known as a "defeat device", results in the cars releasing as much as 40 times the level of legally allowed emissions.

"We expected better from VW," Ms Giles added.

The EPA has issued the carmaker with a "notice of violation" and it could face a hefty fine.

Clean Air Watch, an environmental advocacy group, said in a statement that the charges were "truly appalling".

The allegations affect 482,000 diesel cars sold in the US, including the 2009-15 Jetta, Beetle, Audi A3 and Golf, and the 2014-15 Passat.

VW said in a statement it is co-operating with the investigation.