Automakers are under intense pressure to meet emissions regulations put in place by the world's governments. Volkswagen allegedly had a slightly different solution.
The U.S. Environmental Protection Agency (EPA) accused Volkswagen of using software designed to sidestep emissions regulations in nearly 500,000 vehicles.
In total, 482,000 vehicles are being implicated, including the 2009-2015 Volkswagen Golf, Beetle, Jetta and Beetle, the 2014-2015 Volkswagen Passat and the 2009-2015 Audi A3. The cars were possibly installed with a "defeat device," a piece of software designed to detect when the car is undergoing emissions testing and turn on all of the car's emissions control systems then. In normal driving, the systems would turn off, causing 40 times larger nitrogen oxide emissions, according to the E.P.A.
Nitrogen oxide is a major contributor to smog, which can lead to increased respiratory problems and premature death.
The installation of this software is in violation of the Clean Air Act, and as such, the E.P.A, the State of California and the Department of Justice will launch an investigation.
Last November, Hyundai and Kia were fined $100 million for violating the Clean Air Act. The two companies inflated their fuel economy figures for their 2012 vehicles.
The likely reason why Volkswagen could have gone to the trouble to develop and use software like this is to boost performance; emissions control equipment tends to suck power out of an engine.
.@epa statute allows for maximum possible fine is $37,500 per vehicle, so $18 billion total fine possible for @vw and @Audi if applied— Ryan Beene (@RyanBeeneAN) September 18, 2015
Researchers from West Virginia University, working with the International Council on Clean Transportation, discovered the software, according to the EPA's press release. Volkswagen admitted to using the software after the E.P.A. and the California Air Resources Board (CARB) demanded an explanation in September.
"Volkswagen Group of America, Inc., Volkswagen AG and Audi AG received today notice from the US Environmental Protection Agency, US Department of Justice and the California Air Resources Board of an investigation related to certain emissions compliance matters. VW is cooperating with the investigation; we are unable to comment further at this time," said an official statement Volkswagen.
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"Depending on the complexity of the repair and the lead time needed to obtain the necessary components, it could take up to one year to identify corrective actions, develop a recall plan, and issue recall notices," noted a spokesperson for the E.P.A.
Software like this has been used before, but it typically has come from aftermarket companies, not automakers.
It's unclear if this issue only pertains to U.S. model Volkswagens and Audis equipped with four-cylinder diesels, or their world-market counterparts as well.
A report from Jalopnik notes that all of Volkswagen's ads for its diesel models have been deleted from YouTube, apparently at the company's request.
Update — 5:14 p.m. ET:: An earier version of this story said Volkswagen was issuing a recall. No recall has been issued.