Diesel-gate Update – Volkswagen Sued by U.S. Justice Department For Up To $90 Billion [News]

2013 volkswagen beetle tdi diesel badge

German automaker Volkswagen AG was hit with a civil lawsuit on Monday from the U.S. Justice Department. The Justice Department alleges VW violated the Clean Air Act by installing vehicle software to cheat emissions testing. When not connected to testing equipment, the software would cause the emissions control system of a vehicle to underperform or turn off completely, thus increasing vehicle performance. The resulting lawsuit could result in fines of $90 billion or more.

In September, Volkswagen first admitted to installing the software in vehicles with its 2.0L and 3.0L diesel engines, including some Audi and Porsche models. Assistant Attorney General John Cruden sums up the lawsuit:

“The United States will pursue all appropriate remedies against Volkswagen to redress the violations of our nation’s clean air laws… We’re alleging that they knew what they were doing, they intentionally violated the law, and that the consequences were significant to health.”

Volkswagen’s admission to the illegal activities pretty much preclude it from any chance of a legal defense, according to Daniel Riesel, an attorney who defends companies in lawsuits related to environmental crimes. Rather than trying to defend itself, the automaker will most likely seek a lower penalty, claiming that the maximum of would be “crippling to the company and lead to massive layoffs,” says Riesel.

This sounds like a “too big to fail” defense to us. What do you think, should VW be hit hard where it counts or should the U.S. cut it some slack? Let us know what you think in the comments section below. To see just how much a vehicle can be affected when hooked up to test equipment, read the article here and watch the video below.