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Volkswagen’s heavy penalty for cheating on emission tests.

According to EPA, Volkswagen cars, have been polluting  from 10% to 40% more than the allowable legal levels of certain pollutants for years. Volkswagen is accused of using a sophisticated software algorithm to cheating on U.S. emissions tests. The illegal software was able to detect when the car was undergoing emissions testing and turn on the full emissions control systems only during that time.

The German automaker halted American sales of popular diesel-powered cars and issued a sweeping apology for violating customers’ trust. VW‘s stocks drop after these accusations almost 20%. Consumer Reports have suspended their rankings until VW provides a fix.

According to news, fines per vehicle could amount to $37.500, meaning a total penalty of $18 billion. There could even be criminal prosecution against VW for misleading regulators.

VW CEO Martin Winterkorn said: “I personally am deeply sorry that we have broken the trust of our customers and the public”, adding that VW is cooperating with authorities and has commissioned an external probe.

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