Volkswagen could face $18 billion in penalties

Volkswagen could face penalties to the extent of $18 billion for allegedly deceiving emission tests using a clever software.

According to U.S. Environmental Protection Agency, diesel cars from Volkswagen and Audi emit as much as 40 times the level of pollutants allowed under the rules. The agency suspects they use a software through which these cars emit fewer pollutants during emission tests than real-world driving conditions.

Around 4,82,000 four-cylinder VW and Audi diesel cars are being considered for non-compliance of rules in the probe. If found guilty of such charges, the German car maker will have to pay $37,500 for each car, taking the total to a mammoth sum of $18 billion.

Following this news, Volkswagen has halted sales of some of its diesel cars in the US. It has also ordered an external investigation into the matter.