Will Vw Sell Diesels Again in Canada

Volkswagen Canada resumes selling diesel cars at middle of emissions-testing scandal

Volkswagen dealers take resumed selling 2015 diesel models despite an ongoing investigation by the federal regime. The visitor says the models take been retrofitted with a software upgrade and will receive a hardware fix next yr to address the emissions problem.

David Bruser News Reporter
Jesse McLean Investigative News reporter

Wed., May 17, 2017 four min. read

Article was updated May. 18, 2017

Volkswagen Canada has recently resumed selling some of its scandal-plagued diesel cars at dealerships beyond the country, despite still being under investigation for allegedly using software on those aforementioned models to cheat emissions tests.

Federal government officials are "looking into the affair to decide the about appropriate grade of action," said Marie-Pascale Des Rosiers, a spokesperson for Environment and Climate change Minister Catherine McKenna.

In the United States, Volkswagen got the light-green light to resume selling 2015 two.0-litre diesel engine models that are undergoing emissions modifications in two phases. The U.S. regulators had already secured a $2.8-billion (U.South.) criminal penalty when the carmaker pleaded guilty as a result of a "long-running scheme" that deceived customers and circumvented standards with emissions-cheating software.

In Canada, the authorities'southward investigation into certain Volkswagen vehicles with model years from 2009 to 2015 is still in progress.

"It would not be appropriate to comment on how (the auction of cars by Canadian dealers) may or may not impact the investigation," Des Rosiers said.

The so-called defeat device in these vehicles meant cars met standards during emissions testing, only pumped out upwardly to forty times the permitted levels of harmful nitrogen oxides while on the open road, the U.S. Environmental Protection Agency (EPA) said.

Volkswagen has said the 2015 models for sale in the U.South. and Canada have been retrofitted with a software upgrade, and will receive a hardware fix when parts are available adjacent year.

"Canada'southward vehicle emission standards are aligned with those of the Usa," said Volkswagen Canada spokesperson Thomas Tetzlaff. "All vehicles are existence modified in accordance with the approved emissions modification prior to auction."

Volkswagen is co-operating with Environment Canada's investigation, he said.

Meanwhile, Volkswagen dealers across the country take in recent weeks been selling 2015 diesel models, including Jettas and Golfs.

"While supplies last!" said the website for an Ottawa dealer that advertised a auction late concluding week. "These vehicles volition non last long."

As Volkswagen had voluntarily stopped sales of these vehicles in Canada, the company is non breaking any regime orders or directions by resuming sales, the spokesperson for the environment government minister said.

The cars had been frozen on dealers' lots since late 2015, when U.S. regulators appear they were investigating the company for the emissions cheating.

Surroundings Canada began its own investigation effectually the same time.

"It is inappropriate for Volkswagen to brand money off these cars earlier Canada has completed its investigation," said Elaine MacDonald of EcoJustice, an environmental advocacy group in Toronto.

A company can face a maximum fine of $6 meg (Canadian) per offence if convicted of violating Canadian vehicle emission regulations. The violating company may also have to forfeit any profits it earned equally a event of the misconduct.

How is it the cars are back on the market? At Volkswagen and in the federal government, the Star plant uncertainty and defoliation.

A Volkswagen Canada spokesperson initially told the Star this week that the company was recently given an "exemption" by the federal authorities — similar to one granted in the U.S. — that immune the 2015 vehicles back on the market.

This was disruptive news to both Transport Canada and Environment Canada, which pointed the finger at each other as the agency responsible for such a possible exemption.

And so the Volkswagen spokesperson followed upward to say no permission was asked for or given.

"Surround Canada, they don't issue blessing or rejections" in such situations, VW's Tetzlaff said. "We informed them but they don't say aye or no. We informed them so that they're aware of information technology."

In the United States, regulators allowed Volkswagen to resume selling its 2015 diesel models with updated emissions software. The vehicles will likewise receive repairs to the hardware at a afterward engagement.

This blessing to sell the 2015 vehicles came after the visitor pleaded guilty to three criminal felony counts and agreed to pay a $2.eight-billion (U.Due south.) penalty for misleading regulators and customers by using the emissions-adulterous software.

The U.S. government as well secured upwards to $14.7 billion in settlements from Volkswagen in connection with the diesel scandal. Almost $three billion of that coin will go towards mitigating pollution from the affected vehicles.

In April, courts in Ontario and Quebec canonical a $2.one-billion settlement in a class activity lawsuit that offered cash payments to the roughly 105,000 people who had already bought or leased Volkswagen or Audi vehicles with 2.0-litre diesel engines. (Audi is owned past Volkswagen.) The settlement was not an admission of liability, Volkswagen said at the time in a statement.

Under the agreement, the drivers can choose to sell their vehicle back to Volkswagen, continue the vehicle and go an emissions modification, trade it in, or cease the lease without punishment.

Volkswagen Canada and Audi Canada agreed to pay an boosted $xv-million penalty resulting from an investigation by the federal Competition Bureau, which said the companies misled consumers with faux environmental marketing claims.

Volkswagen Canada's Tetzlaff said he did not know how many 2015 models are for sale or accept already been sold nationwide, though he said the cars, known for fuel efficiency, are specially popular at rural dealerships.

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Source: https://www.thestar.com/news/canada/2017/05/17/volkswagen-canada-resumes-selling-diesel-cars-at-centre-of-emissions-testing-scandal.html

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