VW scandal: US government announces Volkswagen cheated emissions tests a second time

Latest violations cover about 10,000 cars in the US including the 2014 Touareg and 2016 Audi A6 Quattro and A8

The Environmental Protection Agency (EPA) said that VW installed software designed to defeat emissions tests on other cars, including Porsche vehicles with three-litre six-cylinder diesel engines, pictured (Reuters)

Volkswagen has been dragged back into crisis after the US government announced the German car giant cheated a second time on emissions tests.

The Environmental Protection Agency (EPA) said the beleaguered firm installed software designed to defeat emissions tests on Audi, VW and Porsche vehicles with three-litre six-cylinder diesel engines. The news widened a scandal that appeared to be dying down following revelations in September that Volkswagen installed “defeat devices” in its cars to disguise illegal emission levels in around 11 million cars worldwide.

The latest violations cover about 10,000 cars in the United States including the 2014 Touareg and 2016 Audi A6 Quattro, A7 Quattro, A8 and Q5.

They also include the 2015 Porsche Cayenne raising awkward questions for the new VW Chief Executive Matthias Mueller. The 62-year old former head of VW’s Porsche division took over from Martin Winterkorn, who resigned shortly after the crisis first erupted.

The scandal led to the car giant posting a third-quarter operating loss of €3.5bn (£2.5bn). After the figures emerged last week, Mr Mueller said: “We will do everything in our power to win back the trust we have lost.”

The latest affected vehicles were found to have a timer that turns on pollution controls when testing begins, including fuel injection timing, exhaust gas recirculation rate and fuel injection pressure. All cause the cars to emit less nitrogen oxide pollution by operating at high exhaust temperatures, the EPA said in newly-published documents. One second after the first phase of the test ends, the cars return to normal operation.

Martin Winterkorn, the former Volkswagen CEO, resigned shortly after the crisis first erupted (Reuters)

The EPA has issued a second notice of violation (NOV) of the Clean Air Act to VW as a result of its findings, which showed the luxury cars give off up to nine times more nitrogen oxide pollution while being driven than they do when tested.

Volkswagen faces fines of up to $37,500 per vehicle, which means up to $375 million could be added to penalties already estimated in the billions of dollars.

Cynthia Giles, assistant EPA administrator, said: “VW has once again failed its obligation to comply with the law that protects air quality for all Americans.”

The company has set aside €6.7bn (£4.8bn) to deal with the controversy, which does not account for any penalties, fines or compensation for which the firm might be liable - and indicated that this figure would rise.

The company said in a statement: "Volkswagen AG wishes to emphasize that no software has been installed in the 3-liter V6 diesel power units to alter emissions characteristics in a forbidden manner. Volkswagen will cooperate fully with the EPA clarify this matter in its entirety."