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Feds allege widespread Volkswagen cheating on clean-air rules

Volkswagen intentionally installed software in nearly a half-million diesel vehicles that helped the cars evade substandard results on emissions tests, the federal government charged Friday. The Environmental Protection Agency issued a notice of violation to the German automaker, saying the company's software broke the law by violating two provisions in the Clean Air Act. Circumventing the standards meant affected cars emitted as much as 40 times the allowable level of certain pollutants. Both the EPA and California Air Resources Board have launched investigations. In its notice of violations, the EPA said Volkswagen officials admitted to installing and concealing what they call a "defeat device," which was designed to detect when the cars were undergoing official emissions tests – and only turn on emissions controls during that time. "Our goal now is to ensure that the affected cars are brought into compliance, to dig more deeply into the extent and implications of Volkswagen's efforts to cheat on clean air rules, and to take appropriate further action," said Richard Corey, executive officer of CARB. The allegations cover approximately 482,000 vehicles sold in the United States over the past seven years. Cars involved include diesel versions of the Jetta, Beetle, Audi A3 and Golf manufactured between the 2009 and 2015 model years. Passats manufactured for the 2014 and 2015 model years are also included. Federal officials note there is no safety danger to motorists, but the cars will be recalled for repairs. If true, Volkswagen faces a fine that could run in the hundreds of millions of dollars -- likely higher than the $300 million charge the EPA levied last November at Hyundai and Kia for exaggerating the fuel-economy in several models. The charges also put a tremendous dent into the company's plans to increase sales of its "Clean Diesel" vehicles in North America. In a written statement, Volkswagen Group of America acknowledged it had received the notices from the EPA and CARB. "VW is cooperating with the investigation; we are unable to comment further at this time," it said. Federal officials said the defeat-device software was uncovered during an independent analysis by researchers at West Virginia University, who in working with the International Council on Clean Transportation, a non-governmental organization, raised questions about emissions levels.

VW internal investigation finds 'no evidence' against suspended engineers

Volkswagen is still working out the chain of events that led to emissions-evading software being installed in 11 million diesel vehicles worldwide and deciding who was responsible for the treachery. So far, the German automotive giant's internal investigation hasn't publicly named many suspects, and three suspended executive-level engineers have been found not to be culpable in the wrongdoing, according to an anonymous insider speaking to Reuters. VW knows that the software began being installed in the EA 189 engine in 2008. The internal investigation has found that the emissions-evading tech was created because the powerplant was found to fail US standards. Plus, the diesel mill wasn't meeting cost targets, according to Reuters. The automaker responded by suspending over 10 employees, but three top engineers among them might not have been involved. Those put on leave include Heinz-Jakob Neusser from VW, Ulrich Hackenberg from Audi, and Wolfgang Hatz who led Porsche's research and group-wide engine development. The internal detective work hasn't turned up any evidence against these three men. In addition to VW's own inquires, government investigators in both the US and Germany are taking a serious look into the company's actions, too. So far, the automaker is setting aside about $7.3 billion to pay to fix the vehicles with the evasive software. Depending on what authorities find, the costs could grow quickly. Beyond the financial implications, the scandal has led to a serious shakeup in VW's corporate structure. Related Video:

2016 Audi A6 to start at $46,200*, A7 begins at $68,300*

Audi has announced pricing on the new A6 sedan and A7 four-door coupe, with the former starting at $46,200 for a 2.0-liter, turbocharged four-cylinder and front-wheel drive. Of course, things can and do climb rapidly from there. Adding Quattro all-wheel drive to the four-cylinder model bumps the price up $2,200, while moving from the base Premium to the mid-level Premium Plus trim will add $3,700, regardless of the drivetrain. Speaking of that Premium trim, it's only available on the 2.0-liter A6. Every other variant starts with the Premium Plus. At that point, the cheapest six-cylinder you can get is the $57,400 model, while the diesel-powered A6 TDI starts at $59,500. Moving up to the top-end Prestige trim bolsters the price by $4,200, for both engines. If you fancy the sleeker lines of the A7, the entry-level 3.0-liter Premium Plus can be had for $68,300, while the TDI runs $70,400. While the starting price is higher than the A6, adding the Prestige trim is more reasonable, with both engines demanding $2,650 for the top-tier equipment level. And of course, we can't get away without mentioning Audi's high-performance models. A base S6 Premium Plus begins at $70,900, while the Prestige is $75,300. The S7 and RS7, both of which are limited to the Prestige trim level, start at $82,900 and $108,900, respectively. None of the above prices include the standard $925 destination charge. Scroll on down for the official press release on the pricing changes for the new Audi A6 and A7. Related Video: Audi announces pricing for the new 2016 A6 and A7 model lines April 17, 2015 | Herndon, Virginia Award-winning vehicles get more dynamic designs, improved technology and greater power and efficiency New 2.0 Liter TFSI engine – the most powerful engine in its class, with greater performance and efficiency Standard next generation of MMI® with Audi connect® and rapid 4G LTE connectivity Audi today announced pricing for the 2016 A6 and A7 model lines. With new engines and updated design, all Audi A6 and A7 models now offer more power, greater fuel efficiency and class-leading technology for two of the Audi brand's top-selling vehicles. The 2016 A6 and A7 sedans boast more athletic design as well as new headlights and driver assistance systems. New infotainment systems provide even higher levels of interior luxury and refinement.