The federal government should be moving ahead with action against Volkswagen in the wake of news that Ontario has charged the company and carried out a raid on its headquarters, according to an environmental organization.
Volkswagen cars are lifted inside a delivery tower of the company in Wolfsburg, Germany, Tuesday, March 14, 2017. The CEO of German automaker Volkswagen says the United States remains a “core market” for the company despite its diesel emissions scandal and has underlined that it hopes to expand there. Matthias Mueller made the comments Tuesday at the company’s annual news and investor conference at its headquarters in Wolfsburg, Germany. (AP Photo/Michael Sohn)
On Tuesday, provincial authorities executed a search warrant at Volkswagen Canada offices in the Toronto area as part of its investigation into the emissions scandal that rocked the company two years ago.
“It’s good news, finally. Now if we could just get Environment Canada to act on behalf of the country, that would be a great thing,” said Tim Gray, executive director of Environmental Defence.
He said the federal government has broader powers than the province and can impose higher fines on offenders that could be used to protect against pollution and accelerate the transition to electric vehicles.
A statement from McKenna at the time said her department is investigating and will act if necessary. The department did not immediately respond Wednesday to a request for an update.
The Ontario government said the search warrant was part of its continuing investigation.
“Yesterday, MOECC executed a search warrant at the company’s Ajax facility. Under the charge, Volkswagen is alleged to have caused or permitted the operation of vehicles that did not comply with emission standards prescribed by Ontario regulations,” said Environment Minister Chris Ballard in a statement.
“If the allegations are proven in court, penalties for the offence will be determined following a sentencing hearing.”
He added Volkswagen owners, dealers, service managers and technicians are not the focus of the investigation.
The company, meanwhile, said in a brief statement it is co-operating with the Ontario government and it would not be “appropriate” to comment further.
Earlier this year, Quebec and Ontario courts approved a settlement agreement with members of a Canadian class-action lawsuit who bought or leased certain Volkswagen or Audi vehicles with diesel engines caught up in the emissions cheating scandal.
It has been more than a year since Volkswagen agreed to pay more than $20 billion to settle criminal charges and civil claims related to the company’s sale of nearly 600,000 cars with “defeat devices” designed to beat U.S. emissions tests.
Volkswagen pleaded guilty in the U.S. after software was found in certain diesel vehicles that made it appear as though the cars were producing fewer emissions than they really were.
In fact, under normal conditions, the cars emitted 35 times Canada’s legal limit on nitrogen oxides, which have adverse effects on human health and contribute to climate change.
About 105,000 of the rigged vehicles were sold in Canada and Volkswagen has a court-certified settlement program underway to buy back the cars and compensate Canadians who owned or leased them.
Tony Faria, an auto industry analyst at the University of Windsor, said it’s not surprising that Ontario is laying charges two years after the scandal erupted.
“Officials everywhere, not just in Canada but in the U.S., Germany, many other countries where many Volkswagen vehicles had been sold, they’re all still looking into it and at this stage Volkswagen still isn’t finished by a long shot with all of the court cases they have to face,” he said.
He said the scandal has affected the entire market, noting Germany and France have announced plans to phase out diesel engines over the next 20 years.